You are asked to model the given scenario as a game and make a pay-off matrix:...

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You are asked to model the given scenario as a game and make a pay-off matrix: A shared lake streams through two towns- A and B. The lake begins its route from town A, and flows through towns B before meeting up with a river stream. Both towns are faced with the choice to either block the lake (for its residents use) or use it to facilitate its fishing economy. If either towns blocks the lake, it would adversely hamper the fish population in the lake, either by decreasing the water flow downstream or preventing fish from swimming upstream. So if one town dams the river whilst the other fishes, it is bad for the town who fishes. If they both fish, it is good for both but not as good as the case where they both block the lake, since domestic use of water is worth more than acquiring fish. You are asked to model the given scenario as a game and make a pay-off matrix: A shared lake streams through two towns- A and B. The lake begins its route from town A, and flows through towns B before meeting up with a river stream. Both towns are faced with the choice to either block the lake (for its residents use) or use it to facilitate its fishing economy. If either towns blocks the lake, it would adversely hamper the fish population in the lake, either by decreasing the water flow downstream or preventing fish from swimming upstream. So if one town dams the river whilst the other fishes, it is bad for the town who fishes. If they both fish, it is good for both but not as good as the case where they both block the lake, since domestic use of water is worth more than acquiring fish.

Answer rating: 100% (QA)

To create a payoff matrix for this scenario we need to consider the choices and outcomes for each to... View the full answer