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2. Consider the following N-player game. Each player can choose strategy A or strat- egy B. The state variable is x, the proportion of
2. Consider the following N-player game. Each player can choose strategy A or strat- egy B. The state variable is x, the proportion of players choosing strategy A, and ranges from 0 to 1 (1 corresponds to all the players choosing strategy A). For all the players, the utility of choosing strategy A is 4x, while the utility of choosing strategy B is x. a. Draw a graph with x as the x-variable and utility as the y-variable. Graph the payoff to strategies A and B. b. There are three interesting points to this game, x = 0, x = 1, and the point where the utility of strategy A equals the utility of strategy B. Which of these three points are Nash equilibria? Which, if any, are tipping points? Explain.
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