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Consider the following situation between 2 players, where each of the players needs to decide whether to `invest' or to `not invest.' The payouts are
Consider the following situation between 2 players, where each of the players needs to decide whether to `invest' or to `not invest.' The payouts are as follows:If both invest, each player gets a payout of 4.If one invests and the other does not, then the player who invests gets 0, and the player who does not invest gets 3.If no player invests, both get 2.
(a) Draw a payout matrix that depicts the situation described above.
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