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Question is shown in image below: 3. (10 points) Mike, Yuyuan, and Kalpana have to each decide whether or not to invest $3 million dollars
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3. (10 points) Mike, Yuyuan, and Kalpana have to each decide whether or not to invest $3 million dollars in developing a pollution reduction technology. If at least two of them decide to invest, then all three benet to the tune of $8 million dollars (each) because of the decreased pollution. However, if at most one of them invests, then no benet accrues to anyone. To clarify, if Kalpana is the only investor in this effort, her payoff is $3 million and the others have a payoff of zero. (a) (2 points) Write down this game in strategic form. Be sure to indicate the strategies of each player and the payoff to each player for every strategy prole. (b) (3 points) (a) Find all Nash equilibria in pure strategies of this game. (0) (3 points) Suppose Mike and Yuyuan use the same mixed strategy, in which they invest with probability p. Find Kalpana's expected payoff if she invests in the project. (d) (2 points) Compute all symmetric mixed strategy Nash equilibria of this gameStep by Step Solution
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