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1. (12 total points) Recall the flat tire example from the first class. Two students (student 1 and student 2) missed an exam because
1. (12 total points) Recall the flat tire example from the first class. Two students (student 1 and student 2) missed an exam because they spent too much time partying the night before. They decide to ask the professor if they can take a make-up exam. The professor asks them why they missed the original exam, and the students say that they were headed to the exam when they got a flat tire. The professor agrees to allow them to take a make-up exam. The students receive the make-up exam and it contains one question: Which tire?. Suppose that each student chooses among four possibilities (driver's front, driver's rear, passenger's front, and passenger's rear). Assume the students cannot communicate prior to taking the make-up exam. Suppose that the students both receive a zero (0) if their answers do not match, but they both receive 100 if their answers do match. a. (3 points) Draw this game in its normal form. b. (3 points) Does either student have a dominant strategy? Explain. c. (3 points) Does either student have a dominated strategy? Explain. d. (3 points) How many Nash Equilibria are there in this game? (If there are any at all.) Explain.
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