During the pandemic, stockpiling behavior have been criticized in the newspapers and described as irrational. From a game theory perspective, stockpiling of toilet paper can be modeled as a strategic game. Let's assume that we have two players who can choose between option 1: running to buy toilet paper (stockpiling behavior); and option 2: waiting to buy toilet paper. They believe that there is a risk that supermarket will run out of stock. The following matrix gives the payoffs of each choice, where in each cell, the first number is the payoff of player A and the second number is the payoff of player B.

a.Explain the strategic interactions behind the stockpiling behavior

b.Find the equilibrium by elimination of dominated strategies

c.Does individual rationality lead to a socially desirable outcome? Why?

Player B Wait to buy Run to buy Player A Wait to buy 3, 3 1,4 Run to buy 4,1 2,2