One family of social dilemmas arises where a group of people are involved in some task that depends on the efforts of each of them. The strategy choices are work or shirk. In an effort dilemma, one persons shrinking places the burden of increased effort on the other(s). The payoff if both players work is 10 whereas if one player shrinks the payoff is 2 to the other player who has to do all the work and 14 to the player who has shirked the work. If both players shrink then the payoff to each of them is 5.
(a) Represent this game in normal fashion.
(b) Are there any dominant strategies in this game? If there are then what are they?
(c) Has the game dominant strategy equilibrium?
(d) What would be the cooperative solution in this game?