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Case Study

Group Project Payoffs

Two students, Alex and Ben, are partners on a graded project. They each have two choices: 'Work Hard' or 'Slack Off'. The final grade on the project depends on the effort of both students. Alex personally values getting a high grade but dislikes putting in a lot of effort.

Consider the specific outcome where both Alex and Ben choose to 'Work Hard,' and as a result, they receive an 'A' on the project. From Alex's perspective, what factors combine to determine his payoff for this specific outcome? Explain your reasoning.

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Updated 2025-09-15

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