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A shoplifter and a security guard are playing a simultaneous game. If the shoplifter steals and the security guard is vigilant, the shoplifter gets
A shoplifter and a security guard are playing a simultaneous game. If the shoplifter steals and the security guard is vigilant, the shoplifter gets caught she suffers a loss of 20, and the security guard gets a bonus worth 15. If the shoplifter steals and the security guard is not vigilant, she does not get caught and gains 15 and the guard loses 5. If the shoplifter does not steal and the guard is vigilant, the guard loses 3 for the effort, while the shoplifter gains nothing. If the shoplifter does not steal and the guard is not vigilant, neither gain anything. What is the Nash equilibrium of this simultaneous game? a. Steal, Vigilant b. Steal, Not vigilant C. Not steal, Vigilant d. The game has no Nash equilibrium If the shoplifter knows that the security guard has a reputation of always being vigilant, what is his best response? a. Steal Not steal If the shoplifter knows that the security guard has a reputation for sleeping on the job, what would his best response be? a. Steal b. Not steal the security guard knows that the shoplifter has been caught before, his best response would be a. Being watchful Sleeping on the job If the security guard is somehow certain that the shoplifter would not steal, his best response would be a. Being watchful b. Sleeping on the job
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