Consider the following payoff matrix, where the payoffs are profits in thousand $.

Explanation of payoff: If Player 1 chooses Strategy A and player 2 chooses Strategy B then Player 1 gets $150,000 and Player 2 gets $140,000

Player 2

Strategy A BC

A270, 250150, 140295, 150

Player 1

B260, 220300,240280, 145

C240, 225120, 130290, 230

1.Find the Nash equilibrium if the players make the decisions simultaneously.

2.Do either player have a dominant strategy? Is this a prisoner's dilemma problem?

3.Find the outcome if both players are risk averse and choose a maxi-min strategy.

4.Now consider the game as sequential.How much would player 1 invest to be the first mover?

5.Is there any potential for side payments? If so, who will pay and how much? Explain clearly.