6. Your economics instructor is at it again (see question 4). This time, you have to do a twostudent project. Assume that you and your partner are both interested in maximizing your grade, but you are both very busy and would be happier if you could get a good grade with less work.

a. What is your dominant strategy? Explain.

b. What is your partner’s dominant strategy?
Explain.

c. What is the Nash equilibrium in this situation?
Explain.

d. If you and your partner are required to work together on a number of projects throughout the semester, how might this requirement change the outcome you predicted in parts (a), (b), and (c)?

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You Work hard Work hard Your partner Grade A, but your partner had to work 10 hours. Happiness = 7/10. Grade = A, but you had to work 10 hours. Happiness 7/10. Grade = A, but your partner had to work 15 hours. Happiness = 4/10. Work less hard Grade A, and your partner only worked 5 hours. Happiness = 9/10. Grade = A, but you had to work 15 hours. Happiness = 4/10. Grade B, but your partner only worked 5 hours. Happiness = 6/10. Work less hard Grade A, and you only worked 5 hours. Happiness = 9/10. Grade B, but you only worked 5 hours. Happiness = 6/10.