Consider again the two families trying to decide whether to donate to a fund to build a public park. The payoffs are shown in Figure 9P-1.

b. Suppose Family A agrees to match the donation of Family B. Under these new circumstances, what strategy will each family choose?

Consider again the two families trying to decide whether to donate to a fund to build a public park. The payoffs are shown in Figure 9P-1.

a. What is the Nash equilibrium?

You have just played rock, paper, scissors with your friend. You chose scissors and he chose paper, so you won. Is this a Nash equilibrium? Explain why or why not.

A town's two gas stations are each considering lowering prices to attract more sales. How this affects the profits for each gas station depends on whether the other also lowers prices. The decision matrix in Figure 9P-3 shows the payoffs, depending on what each player decides to do. Identify any Nash equilibria.

You have been texting with your friends trying to make plans for this evening. Your best friend Jocelyn is not sure if she will finish her homework in time to come out, but if she does, she wants to go to a new restaurant on the north end of town that you've both been wanting to try. Another group of friends is going to a restaurant on the south end of town, but you've already been to this restaurant and it was only okay. No one is returning your calls, but you need to get on the subway and head into town if you want to do anything this evening. You have to decide whether to head north or south. Do you have a dominant strategy? Explain why or why not.