Let’s say there are two friends, Adam and Jason who each has two strategies: Share  and don’t share notes to classmates a night before final exam. The payoff for each of them is in the above payoff matrix.   a)    Do you think this game has a dominated strategy equilibrium? Is it a stable equilibrium? Justify your answer.                       b)    Is it worth for both of them to end up sharing notes to others a night before final exam? Justify your answer.

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Let’s say there are two friends, Adam and Jason who each has two strategies: Share  and don’t share notes to classmates a night before final exam. The payoff for each of them is in the above payoff matrix.  
a)    Do you think this game has a dominated strategy equilibrium? Is it a stable equilibrium? Justify your answer.                      
b)    Is it worth for both of them to end up sharing notes to others a night before final exam? Justify your answer.   

Jason
Don't share
Share
Share
280
330
Adam
280
270
Don't share
270
285
330
285
Transcribed Image Text:Jason Don't share Share Share 280 330 Adam 280 270 Don't share 270 285 330 285
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