Kim and Abby are sisters who share a room. Their room can easily get messy, and their parents are always telling them to clean it up. Here are the costs and benefits to both Kim and Abby, of taking time to clean their room:  If both Kim and Abby clean, they each spend  two hours and get a clean room.  If Kim decides not to clean and Abby does all the cleaning, then Abby spends 10 hours cleaning (Kim spends 0) but Abby is exhausted.  The same would occur for Kim if Abby decided not to clean - Kim spends 10 hours and becomes exhausted.  If both girls decide not to clean, they both have a dirty room. a.  What is the best outcome for Kim and Abby? What is the worst outcome? (It may help you to construct a prisoner's dilemma table) b. Unfortunately, we know that the optimal outcome will most likely not happen, and that the worst outcome will probably be chosen instead.  Explain what it is about Kim's and Abby's reasoning that will lead them both to choose the worst outcome.

ENGR.ECONOMIC ANALYSIS
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Kim and Abby are sisters who share a room. Their room can easily get messy, and their parents are always telling them to clean it up. Here are the costs and benefits to both Kim and Abby, of taking time to clean their room:  If both Kim and Abby clean, they each spend  two hours and get a clean room.  If Kim decides not to clean and Abby does all the cleaning, then Abby spends 10 hours cleaning (Kim spends 0) but Abby is exhausted.  The same would occur for Kim if Abby decided not to clean - Kim spends 10 hours and becomes exhausted.  If both girls decide not to clean, they both have a dirty room.

a.  What is the best outcome for Kim and Abby? What is the worst outcome? (It may help you to construct a prisoner's dilemma table)

b. Unfortunately, we know that the optimal outcome will most likely not happen, and that the worst outcome will probably be chosen instead.  Explain what it is about Kim's and Abby's reasoning that will lead them both to choose the worst outcome.

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