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

Player 2

Strategy X Y

Player 1 A 30, 30 16, -50

B -50, 16 50, 50

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

a. (50, 50)

b (-50, 16)

c. (30, 30)

d. (16, -50)

Which of these outcomes would you consider most likely?

• (30,30)
• (50,50)
• (-50,16)
• (16,-50)

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?

What outcome do you think would occur as a result?

• (30,30)
• (50,50)
• (16,-50)
• (-50,16)

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?

• (30,30)
• (-50,16)
• (16,-50)
• (50,50)