Question: Two roommates John and Jim are playing a simultaneous game of cleaning the apartment. If neither of them clean, the apartment gets filthy and both
Two roommates John and Jim are playing a simultaneous game of cleaning the apartment. If neither of them clean, the apartment gets filthy and both get a utility of 2. If John cleans and Jim doesn't, John gets a utility of 1 and Jim gets a utility of 4. If Jim cleans and John doesn't, Jim gets a utility of 1 and John gets a utility of 4 and if both clean up the apartment, they each get a utility of 3.
If the apartment owner decides to fine both the roommates if the apartment is dirty, such that now if neither of them clean they each get a 5 utility loss, what would the new equilibrium be now?
a.John cleans, Jim doesn't
b.Jim cleans, John doesn't
c.Neither of them clean the apartment
d.Both A & B
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