Will and Grace have adjoining unfenced back yards and each has just adopted a new puppy. Will values a fence between their yards at $250 and Grace values a fence between their yards at $200. The cost of building the fence is $300, which will be split equally if they both agree to build the fence. Therefore, their payoff matrix is as follows. 
This game is a(n) ________ because ________.
A. example of logrolling; both neighbors need to cooperate to provide the good.
B. prisoner's dilemma; by playing their dominant strategy, both Will and Grace do worse than if they had both played their dominated strategy.
C. inequitable situation; Grace does not value a fence as highly as does Will.
D. tragedy of the commons; the backyard is treated as a common area by the puppies.
Answer: B
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