Your economics instructor assigns you and a student you do not know a joint project. Assume that you and your partner are both interested in maximizing your grade, but you are both very busy and get more happiness if you can get a good grade with less work. Since you do not know the student, making a credible commitment to how much you are going to work is impossible. Note that on the payoff matrix below, 10/10 is happiest and 1/10 is least happy. This level of happiness is a combination of how much you work and the grade you achieve. Assume that you will have to work on only one project with this partner.
You Work Hard Work Less Hard Grade-A, but you had to work 6 hours. Happiness-6/10 [Grade A, and you only worked 2 hours. Happiness-10/10 Your Partner Work Har Grade-A, but your partner had to work 6 hours. Happiness-6/10 Grade-A, but your partner had to work 10 hours. Happiness 4/10 Work Less Hard Grade-A, but you had to work 10 hours. Happiness-3/10 Grade B, but you only worked 4 hours. Happiness 5/10 Grade A, and your partner only worked 2 hours. Happiness-8/10 Grade- B, but your partner only worked 4 hours. Happiness-5/10 In this game, both you and your partner will collectively work a total of hours on the project.
