Use the following payoff matrix for a one-shot game to answer the accompanying questions.

Player2

X Y

Player 1 A 36, 36 -50, 4

B 4, -50 16, 16

a. Determine the Nash equilibrium outcomes that arise if the players make decisions independently, simultaneously, and without any communication.

Instructions:In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box.

• (4,-50)
• unchecked
• (-50,4)
• unanswered
• (16,16)
• unanswered
• (36,36)
• unanswered

Which of these outcomes would you consider most likely?

(-50,4)

b. Suppose player 1 is permitted to "communicate" by uttering one syllable before the players simultaneously and independently make their decisions. What should player 1 utter?

B

What outcome do you think would occur as a result?

(-50,4)

c. Suppose player 2 can choose its strategy before player 1, that player 1 observes player 2's choice before making her decision, and that this move structure is known by both players. What outcome would you expect?

(36,36)