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Assume two individuals, Blair on the left side and William on the top side just met one another and are thinking of becoming friends. They
Assume two individuals, Blair on the left side and William on the top side just met one another and are thinking of becoming friends. They plan to behave in these respective ways to one another: nice, indifferent (don't care), and mean. "I know, very strange but this is what happens when you are an Economist!" Assume that the payoff will be how good they feel after these particular strategies are followed through with a positive number being good and negative being bad. First number being the left player's decision payoff and second number being the top player's decision payoff. Figure out the game below in a onetime game. Strategies Be Nice Be Indifferent Be Mean Be Nice 6B ,6B B/10 , 1 0,6 Be Indifferent 1, B/10 1, 1 0, 0 Be Mean 6,0 0 , 0 4,4 B is greater or equal to 0 a.Please state the Nash equilibrium(s) and Pareto Optimal(s) under the different scenarios (No Explanation; No Marks)Hint: (Copy and Paste the Chart Below and draw out the stars). (15) b. "In Game Theory, competition between companies are always considered bad." True or false? Explain carefully.(15)
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