Question

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Question 1 of 1) 1. value: 10.00 points Note: This question will not be automatically graded. It will be sent to your instructor for review. Use game theory to explain why mandatory (as opposed to voluntary)"shelter-in-place" orders are necessary. Maybe this would help? Alice C D (3,3) (0,5) Mon ID (5,0) (1,1)

Answer 1

Bob and Alice are two players here. The strategy D is the dominant strategy for the both players. Thus each player will go with the dominant strategy. Eventually both end up getting payoff of 1 each.

But such outcome does not maximize the profits.

If these players voluntarily cooperate and go with strategy C, they will end up getting the profit of 3:each.

Thus mandatory outcomes are not profitable.