Analyzing Collaborative Project Outcomes
Two towns, Northwood and Southville, are collaborating to build a new regional airport. They must agree on one of two possible locations: Site Alpha or Site Bravo. The table below shows the economic benefit (in millions of dollars) each town receives based on the chosen location. The first number in each pair is the benefit to Northwood, and the second is the benefit to Southville.
| Southville: Site Alpha | Southville: Site Bravo | |
|---|---|---|
| Northwood: Site Alpha | (10, 6) | (0, 0) |
| Northwood: Site Bravo | (0, 0) | (5, 15) |
A 'stable outcome' is a situation where, given the other town's choice, neither town would be better off by changing its own choice. Based on this information, identify which of the stable outcomes is more efficient for the region as a whole and briefly explain your reasoning.
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