1.Consider the following game. Anuja and Biranavi are enemies, and not on speaking terms. However, they have a lot of common friends. Both want to invite their friends to a house party on either Friday or Saturday at 9 pm. If both set the party on the same date, then it will be a disaster, and each would earn a payoff of10. If they set the parties on different days, then the one with the Saturday party earns a payoff of 5, while the one with the Friday party earns a payoff of 4.Draw the payoff matrix. What is this game's Nash equilibrium (or equilibria)? Explain.

2.Consider the following game. Two companies sell Haitian coffee. Each company currently makes$5 million in revenue. They need to determine whether they should engage in a social media advertising campaign. Advertising costs$2 million for each company. If one company advertises, and the other does not, then the one that advertises captures$3 million from the company that does not. If both companies advertise, they gain nothing. Draw the payoff matrix. What is this game's Nash equilibrium (or equilibria)? Explain.

3.Three politicians are voting on whether to allow themselves a salary increase of$3,500 per year. If they vote in favour of a raise, then they lose some public support, costing them each$1,500 per year. The salary increase passes if two or more politicians vote in favour of it. What is this game's Nash equilibrium (or equilibria)? Explain. There is no need to draw a payoff matrix.

4.Consider the following game. There are four distinct glasses of wine on a table: three are red wine, and one is white. Two players must pick a glass of wine at the same time. If they choose the same glass of wine, then they each earn$1,000. Otherwise, they earn nothing. Draw the payoff matrix. What is this game's Nash equilibrium (or equilibria)? What is this game's focal point? Explain.

5.Rational ignorance poses a serious problem for democracy but can be partially resolved by implementing Skin in the Game policies. For example, consider the following law: politicians who vote for war must enlist in the military, or have a family member enlists. How does this law (a) fall under Skin in the Game; and (b) Resolve the problem of Rational Ignorance when it comes to foreign policy?