 In the Farmers’ Dilemma game, following the \(C^1,C^2\)-path is strictly better for both farmers than following the \(D^1,D^2\)-path. However, Fiona chooses \(D^1\), as the result of the following simple argument: “If I were to choose \(C^1\), then Alan, who is rational and who knows the payoff structure of the game, would choose \(D^2\). I am also rational and know the payoff structure of the game. So I should choose \(D^1\).” Since Fiona knows that Alan is rational and knows the game’s payoffs, she concludes that she need only analyze the reduced game in the following figure: