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3. Netflix with constrained sharing Now suppose that Netflix change their sharing policy. The purchaser of a Netflix account is now only allowed to
3. Netflix with constrained sharing Now suppose that Netflix change their sharing policy. The purchaser of a Netflix account is now only allowed to share with a fixed number of others. Specifically, each Netflix account may only be viewed by the account purchaser and other people. If an account holder has (strictly) more than & friends then he/she must choose which k to share with. If an account holder has less than friends then he/she may share with all of them. Suppose that the social network is unchanged. That is, it remains like this: Answer the following: 1 2 3 6 5 (a) 5 marks Write out the strategy set for player 1 for K = 1,2, and 3. (b) 5 marks Write out the strategy set for player 3 for k= 1,2, and 3. (d) 5 marks What value for K is optimal for Netflix? (c) 15 marks Find all the pure strategy nash equilibria for K = 1, 2, and 3.
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