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QUESTION 6 Two friends, Amelia and Sophia, are deciding which movie to go and see. Both friends want to go to the same movie. If
QUESTION 6 Two friends, Amelia and Sophia, are deciding which movie to go and see. Both friends want to go to the same movie. If they go to different movies, both will get a payoff of $0. Amelia really wants to see an action movie and will get a payoff of $20 from seeing the action movie with Sophia. Sophia doesn't like action movies much and will only get a payoff of $5 from seeing the action movie with Amelia. Sophia would rather see a romantic comedy and will get a payoff of $10 from seeing the romantic comedy with Amelia. Amelia doesn't like romantic comedies much and would only get a payoff of $3 from seeing the romantic comedy with Sophia. Set this up as a simultaneous game and find the EFFICIENT Nash equilibrium to this game. Amelia goes to the action movie, Sophia goes to the action movie. Amelia goes to the action movie, Sophia goes to the romantic comedy. Amelia goes to the romantic comedy, Sophia goes to the action movie. Amelia goes to the romantic comedy, Sophia goes to the romantic comedy. No EFFICIENT equilbrium
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