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1)Consider a simultaneous game between the USA and Russia, regarding the war in Afghanistan. Each player has two possible strategies, attack or withdraw. The USA

1)Consider a simultaneous game between the USA and Russia, regarding the war in Afghanistan. Each player has two possible strategies, attack or withdraw. The USA will be player 1 (the row player). The payoffs are as follows:

US attacks, Russia withdraws: 7, 0

US attacks, Russia attacks: -1, -4

US withdraws, Russia withdraws: 1 , 0

US withdraws, Russia attacks: 0 , 8

a) Write down the matrix of the game. Calculate a Nash equilibrium? [5 marks]

b) Critically discuss the following statement: "Rationality is never seen in real life, so we should not be assuming it in game theory." . [5 marks]

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