Question
What type of game does the following payoffs matrix represent? Explain. A B A $6,$6 $0,$3 B $3,$0 $3,$3 (b) What prediction(s) would you make
What type of game does the following payoffs matrix represent? Explain. A B A $6,$6 $0,$3 B $3,$0 $3,$3 (b) What prediction(s) would you make for the outcome(s) to be expected in this game? Which concept(s) are you basing your predictions on?[Hint: Apart from the relevant equilibrium concept, think of efficiency and risk.] (c) Imagine that Player 1 and Player 2 have a strong common group identity. Hypothesize how could incorporating a common group identity in each players utility function affect the predictions in part (b)? [A verbal answer to this question of 23 sentences alongside with reasoning about behaviour would be sufficient.]
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