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

Player 2

Strategy X Y

Player 1 A (10, 10). (5,- 150)

B (-150, 5). (25, 25)

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.

• (5,-150)
• (25,25)
• (-150,5)
• (10,10)

Which of these outcomes would you consider most likely?

• (5,-150)
• (-150,5)
• (10,10)
• (25,25)

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?

• A
• B

What outcome do you think would occur as a result?

• (5,-150)
• (-150,5)
• (10,10)
• (25,25)

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?

• (25,25)
• (-150,5)
• (10,10)
• (5,-150)