Question
Two siblings, Sarah and Tom are playing a simultaneous hit and tell game. Sarah can hit Tom or not and Tom can tattle on Sarah
Two siblings, Sarah and Tom are playing a simultaneous hit and tell game. Sarah can hit Tom or not and Tom can tattle on Sarah or not. Relative to no hitting and no tattling, if Sarah hits Tom, and he tattles they both experience a loss of 10. Not telling, gets Tom a bruise, a loss of 5 but Sarah gains 5. If he tattles untruthfully, he gets a gain of 5 and Sarah loses 5. If they get along, no one gets anything
Is the outcome to this game efficient?
1-Yes, the Nash equilibrium to this game is/are efficient
2-No, there are some inefficient Nash equilbrium and some efficient Nash equilibrium in this game
3-No, the Nash equilibrium is/are inefficient
4-No, there is no Nash equilibrium to this game
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