Economics

Coordination Game: Two players can pick either Football or Opera to meet at. If they pick differently, both get a payout of 0. If they choose the same, they both get 1 point. Player 1 prefers football, so if football is picked then player 1 gets +1 Point. Player 2 prefers opera, so if opera is picked player 2 gets +1 Point. Player 1 can choose to talk to let player 2 know, but talking is costly and costs 1 point. (Only player 1 can choose to talk).

a. Write out as extensive form game.

b. Write the game in matrix form (Payoff matrix).

c. What do you expect to be the final outcome and why?