Question
Jules, Becca Evan and seth are thinking of applying to law school. Jules has taken all of the necessary courses and her cost to apply
Jules, Becca Evan and seth are thinking of applying to law school. Jules has taken all of the necessary courses and her cost to apply is $100. Becca and Evan will need to take one additional course before applying and it would cost them each $800 to apply. Seth will need to take two courses before applying and his cost to apply is 1500. The law school has a quota on how many students they will admit. Thus, each students benefit from applying falls as more students apply.
# of students benefit from applying
1 $2000
2 $1000
3 $500
4 $200
If a student decides to apply, the students payoff in the game = the benefit from applying minus the cost of applying. For ex, if Jules and Becca decide to apply but Seth and Evan do not then Jules payoff will be $1000-100 = 900 and Beccas = 1000-800 = 200. Student who dont apply receive a payoff of $0.
a) Find all of the Nash Equilibria of this game. You have to check for pure and mixed strategy Nash Equilibria
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