1.15 Lori employs Max. She wants him to work hard rather than to loaf. She considers offering him a bonus or not giving him one. All else the same, Max prefers to loaf. If they choose actions simultaneously, what are their strategies? What is the Nash Equilibrium?

316% v + Ty T View Zoom Add Page Insert Table Chart Text Shape Media Comment Collaborate Format Document ECON2233 Weekly Assignment 10 + Style Image Arrange Object Placement Max Stay on Page Move with Text Text Wrap None Work Loaf Text Fit Spacing Alpha Back Front Backward Forward 2 3 Align Distribute Bonus Size 12.58 cm 7.45 cm Width Height Constrain proportions -1 Original Size Lori Position 4.21 cm $ 4 4.82 cm X -1 No 0 Rotate + + Angle Flip Bonus Lock Unlock 3 0 Group Ungroup 0 0 389 words