Four students are deciding whether or not to contribute to their group project (it is a zero/one decision, either they contribute or they do not, there are no other options). For each student, the cost of contributing to the project is 5 utils. But for each student who contributes, all four of them will benefit from an increase in their training and the appreciation by their teacher of the work, so they will each gain 3 utils. Read the following statements and select the correct one(s).
Question 12Answera.
a.If a student is selfish, but others are altruistic, she has a dominant strategy to contribute.
b.If all students are altruistic, each has a dominant strategy to contribute.
c.If a student is selfish, but others have a possibility to punish non-contributors after the project is done (say by not talking to her any more), then she may choose to contribute.
d.If all students are completely selfish the dominant strategy equilibrium is that all of the students contribute since they each receive a private benefit to contributing.
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