Problem 5

Two friends, Rashid and Salim, are going to a Movie. They play a simple game in which they hold out one or two fingers to decide who will pay for the other's ticket. Rashid wins if the fingers held out add up to an even number; Salim wins if the fingers held out add up to an odd number. The price of the ticket is 5 OMR.

a)Construct a payoff matrix for the game.

b)Is there a unique Nash equilibrium in this game?

c)Which strategy should a player use to maximize her chances of winning the game?