Question 3

3. Two criminals are considering whether to rob a bank or a liquor store (LCBO). To successfully rob a bank requires two people, but the LCBO can be robbed by just a single individual. If they both decide to rob the bank, then they each receive $30,000. If they rob the liquor store, they get $1,000. Otherwise, they receive nothing. The situation is depicted below. Figure 2: The Bank Job Criminal Two Criminal One Bank LCBO Bank 30000, 30000 0, 1000 LCBO 1000, 0 1000, 1000 Number left (right) of comma refers to 1's (2's) payofff What is this game's Nash equilibrium? Show your work. (20% 2 Server Time: (9 2 W X PINSCO T X