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Question 5 Candace and Sandra both plan to attend either the Red Sox game or the Celtics game after taking Moon's final exam. They prefer
Question 5 Candace and Sandra both plan to attend either the Red Sox game or the Celtics game after taking Moon's final exam. They prefer to meet at the same event, but before the exam they are so preoccupied to determine which event to attend and they don't run into each other afterwards. Suppose they don't have cell phones, so they can't talk to determine which event they are going to go. The events are on opposite sides of town and due to the serious traffic Candace and Sandra must each choose one event to attend without knowing where the other will be. Sandra will receive 20 utils (measure of happiness) if she ends up at the Red Sox game with Candace and 12 utils at the Red Sox game without her. Candace will receive 16 utils if she finds Sandra at the Red Sox game and 10 utils at the Red Sox game without her. Sandra will receive 18 utils at the Celtics game with Candace and 8 utils at the Celtics game without her. Candace will receive 15 utils at the Celtics game with Sandra and 6 utils at the Celtics game without her. (Total 12 pts.) Sandra (a) Complete the payoff matrix above to reflect the utility levels that Sandra and Candace will receive in each scenario. (4 pts.) (b) Find a Sandra's dominant strategy if there is any. (2 pts.) (c) Find a Candace's dominant strategy if there is any. ( 2 pts.) (d) Find a Nash Equilibrium/or Equilibria in this game. (4 pts.)
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