Question

Deb's strategies (red squares) Deb loves the orchestra (payoff of 100) and hates golf (payoff of – 100). Jim loves golf (payoff of 100) and hates the orchestra (payoff of - 100). But both Deb and Jim prefer to go out together (bonus payoff of 100 each in addition to the payoff from the activity they choose). If they go out separately, they get no bonus. Golf Orchestra 100 What is the Nash equilibrium? Golf 200 100 The Nash equilibrium is that Jim's strategies squares) - 100 200 O A. Deb goes golfing and Jim goes to the orchestra O B. Deb goes to the orchestra and Jim goes golfing O c. both Deb and Jim go golfing OD. both Deb and Jim go to the orchestra Orchestra - 100

Answer 1

Nash Equilibrium-

B. Deb goes to the orchestra and Jim goes golfing

Reason-

When Deb chooses golf, Jim chooses Golf as 200>-100

When Deb chooses Orchestra, Jim chooses Golf as 100>0

When Jim chooses golf, Deb chooses Orchestra as 100>0

When Jim chooses Orchestra, Deb chooses Orchestra as 200>-100

So, Nash Equilibrium is Deb goes to Orchestra and Jim goes to golfing with payoff of 100 each.