What are the equilibrium payoffs for each player if you use these payoff values?
Below is the Exit, Voice, and Loyalty game between the state and the citizen.Recall that E is the payoff that the citizen gets when she exits, L is the payoff that the state gets from retaining a loyal citizen, 0 is the payoff that the citizen gets from remaining loyal, and C is the cost that the citizen must pay for using voice.
Let E = 0.5, let L> 1, and let C = 0.25.
A. ?.25; 1+L
B. .5, 1
C. .75; L
D. .25; 1
E. 0; 1+L
C. .75; L
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