Which of the following involves the disclosure of unethical or illegal activities to someone who is in a position to take action to prevent or punish the wrongdoing?

A.

Gentrification

B.

Redlining

C.

Whistleblowing

D.

Flyposting

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mauveporpoise966Lv1

2 Jun 2021

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Consider a game between a parent and a child. The child can choose to be good (G) or bad (B); the parent can punish the child (P) or not (N). The child gets enjoyment worth a 1 from bad behaviour, but hurt worth -2 from punishment. Thus, a child who behaves well and is not punished gets a 0; one who behaves badly and is punished gets 1 - 2 = -1; and so on. The parent gets -2 from the child’s bad behavior and -1 from inflicting punishment.

(a) Set up this game as a simultaneous‑move game, and find the equilibrium.

(b) Next, suppose that the child chooses G or B first and that the parent chooses its P or N after having observed the child’s action. Draw the game tree and find the subgame perfect equilibrium.

(c) Now suppose that before the child acts, the parent can commit to a strategy. For example, the threat “P if B” (“If you behave badly, I will punish you”). How many such strategies does the parent have? Write the table for this game. Find all pure‑strategy Nash equilibria.

(d) How do your answers to parts (b) and (c) differ? Explain the reason for the difference