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Question 2 (3 points): There are two players. Each player is given an unmarked envelope and asked to put in it either nothing or 300
Question 2 (3 points): There are two players. Each player is given an unmarked envelope and asked to put in it either nothing or 300 of his own money or 600 of his own money. A referee collects the envelopes, opens them, gathers all the money, then adds 50% of that amount (using his own money) and divides the total into two equal parts which he then distributes to the players. *Shiv Nadar University, Uttar Pradesh, India. Address: NH - 91, Tehsil Dadri, Gautam Buddha Nagar, Uttar Pradesh, India - 201314. Email: anup . pramanik@snu. edu. in (a). Suppose that Player 1 has some animosity towards the referee and ranks the outcomes in terms of how much money the referee loses (the more, the better), while Player 2 is selfish and greedy and ranks the outcomes in terms of her own net gain. (For example, if player 1 selects 0 and player 2 selects 150, then player 1's pay-off is 150 and player 2's payoff is -75.) Represent the corresponding game using a table. (b). Find the Nash equilibria of the above game
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