Bob and Tom are two criminals who have been arrested for burglary. The police put Tom and Bob in separate cells. They offer to let Bob go free if he confesses to the crime and testifies against Tom. Bob also is told that he will serve a 15-year sentence if he remains silent while Tom confesses. If Bob confesses and Tom also confesses, they will each serve a 10-year sentence. Separately, the police make the same offer to Tom. Assume that Bob and Tom know that if they both remain silent, the police have only enough evidence to convict them of a lesser crime, and they will both serve 3-year sentences.

a. Use the information provided to write a payoff matrix for Bob and Tom.

b. Does Bob have a dominant strategy? If so, what is it?

c. Does Tom have a dominant strategy? If so, what is it?

d. What sentences do Bob and Tom serve? How might they have avoided this outcome?