Question
It is a beautiful day and Jack and Jill are both going to play outside. Each ofthem has to choose whether to play soccer or
It is a beautiful day and Jack and Jill are both going to play outside. Each ofthem has to choose whether to play soccer or basketball. Jack likes soccer better thanbasketball, while Jill prefers basketball. But both think that it is even more important toplay together than alone. This is reflected in their payoffs, which are identical for the twoplayers: favorite game with the other gives a payoff of 4, favorite game alone a payoff of2, non-preferred game with the other a payoff of 3, and non-preferred game alone apayoff of 1.
a) Write down the strategic form of this game.
b) Find all (pure-strategy) Nash equilibria.
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a The strategic form of the game can be represented in a matrix as follows Jack plays soccer Jack pl...Get Instant Access to Expert-Tailored Solutions
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Macroeconomics
Authors: N. Gregory Mankiw, William M. Scarth
5th Canadian Edition
1464168504, 978-1464168505
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