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3. Netix with unlimited sharing Netix is an American media-services provider and production company headquartered in Los Gatos, California. The company's primary business is its
3. Netix with unlimited sharing Netix is an American media-services provider and production company headquartered in Los Gatos, California. The company's primary business is its subscription-based streaming service which offers online streaming of a library of lms and tv programs. There is a society of six individuals, {1, 2, 3, 4, 5, 6}, who are connected in a social network as below. If there is a link between two individuals, then that pair of individuals are friends. If there is no link between two individuals, then that pair are not friends. All individuals like Netix. Specically, if someone views Netix they get a benet of 1. However, Netix is costly which is bad. To purchase a Netix account costs :1: E (0, 1). Netix allow multiple devices to stream simultaneously. This means that if some indi- vidual purchases a Netix account, then they will share with all of their friends. Each individual has strategy set {0, 1} where 1 means to purchase a Netix account and 0 means to not purchase. The payoff to individual 3' depends directly on their own action and the actions of their friends. Writing 5,- for the strategy of person i, and s_,; for the vector of strategies of everyone other than 3', the payoff to person i, ir(s,;, s_,-) is \"(O 8 ) _ 1, if some friend chose to purchase an account 3 ' '1 _ 0, if no friend chose to purchase an account ir,(1,s_,-) = 1 c, for all s_, Answer the following: (a) 5 marks Does any player have a dominant strategy (strictly or weakly)? (b) 5 marks Does any player have a dominated strategy (strictly or weakly)? (c) 5 marks Find all the pure strategy nash equilibria. (Either write cut mathematically or depict graphically.)
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