With this knowledge in mind, observe the following two-player game between Gov. Newsom (CA) and Gov. Ducey (AZ).

		AZ
		Cooperate	Defect
CA	Cooperate	-3, -3	-8, -2
	Defect	-2, -8	-6, -6

Some background to this game. There is no federal direction so the governors are the primary decision makers. The payouts represent business losses due to social distancing and shelter-in-place directives from the governors. There are only two strategies in this game for both players. They can either cooperate with their directives (coordinate shelter-in-place and reopening with each other) or defect (do not coordinate shelter-in-place and reopening with each other) This game can only be played once.

Regardless, all of the payouts are negative because COVID-19 will hurt the economy no matter what (as weve seen).

1. Solve for Nash Equilibrium and explain your reasoning.
2. If this game could be played repeatedly, do you believe a different outcome would occur? Explain.
3. Based on your answers, do you believe federal direction/mandates is a better course of action versus decisions by states?