1. Game Theory: Goodwill and Salvation Army have entered a marketing war in attempts to increase demand for their respective secondhand clothing. They can offer a special shopping night extravaganza through Groupon or Living Social, place internet advertisements with newspapers, or do nothing. Each thrift shop wants to maximize payoffs, given below. Salvation Army Groupon Living Social wsj.com Nothing Groupon 3,3 15,2 8.4 7,2 Living Goodwill Social 9,12 14,11 2,1 2,1 nyt.com 2,6 2,7 7,13 9,12 Nothing 6.5 5.5 1,2 2, 1 (a) Highlight and underline the payoff corresponding to each player's best response (4 pts). (b) What is(are) the Nash equilibrium(ia) of the game? (Be sure to ONLY state the Nash equilibrium, using the definition of "Nash equilibrium" - other information will result in point deduction!) (2 pts) (c) Now suppose Goodwill has the same strategies given above, but Salvation Army decides to either advertise with wsj.com or Groupon. Goodwill observes Salvation Army's move and then responds. Write out this new game (you can upload a drawing of it if that's easier, but be sure everything is legible) and solve for the NE (highlight your answer). Be sure you list payoffs in the correct order! (5 pts)