6. Your economics instructor is at it again (see question 4). This time, you have to do a two-student project. Assume that you and your partner are both interested in maximizing your grade, but you are both very busy and get more happiness if you can get a good grade with less work.

Grade = A, and you only worked 5 hours.

Happiness = 9/10.

Grade = A, but you had to work 15 hours.

Happiness = 4/10.

Grade = B, but you only worked 5 hours.

Happiness = 6/10.

Grade = B, but you only worked 5 hours.

Happiness = 6/10.

Grade = A, but you had to work 10 hours.

Happiness = 7/10.

Work hard Work hard Your partner Work less hard Work less hard You Grade = A, but you had to work 10 hours.

Happiness = 7/10.

Grade = A, but you had to work 15 hours.

Happiness = 4/10.

Grade = A, and you only worked 5 hours.

Happiness = 9/10.

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 change the outcome you predicted in parts (a), (b), and (c)?