ECOlOliTUTlliQuesonspdf Question 2: Suppose that they are two people, Person A and Person Bo Both ofwhich have been arrested for a crime that they committed together, They know that if they both co- operate with each other and do not confess, then they will each receive a payoff of 8 utils. However, each of them knows that if they confess and the other does not confess. then the person who confesses will receive 10 utils and the person who did not will receive 0 utils. If they both confess, they will receive 2 utils each. a) Fill in the following payoff matrix: Confess Do Not Confess Confess Do Not Confess This is a symmetric problem. b) For Person A. what is their Best Response for each action that Person 5 could choose? c) What is all of the Nash Equilibria in this problem (if any)? ECOlOliTUTlliQuesonspdf Question 3: (Group Work) Suppose that they are two players, a submarine and a ship. The submarine and the ship are both on opposite sides of the island The submarine is trying to sink the ship Each player needs to choose if they want to go North or South around the island. If both players choose the same direction, the submarine will sink the ship. and the submarine will receive a payoff of +1 and the ship will receive a payoff of -1. If they both go in different directions, the submarine will miss the ship. The submarine will receive a payoff of -1, and the ship will receive a payoffof+1. a) Fill in the following payoff matrix; Ship North South North Submarine South b) For the submarine, what is their Best Response for each action that the ship might choose? c) What is all of the Nash Equilibria in this problem (if any)? ECO101_TUT11_Questions.pdf Download i Info X Close Page