Alice and Bob, who do not know each other, want a ticket to the hit show Economics!

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Alice and Bob, who do not know each other, want a ticket to the hit show “Economics!” Only two tickets are left. One ticket is for a frontrow seat, and the other is in the back row. Both Alice and Bob value the front-row ticket at $100 and the back-row ticket at $50. Either ticket costs $20. If they go to the box office, each has an equal chance of getting the front-row ticket. If one goes to a ticket agent (who has special contacts) and pays a fee of $10, he or she will get the frontrow ticket. If both go to the ticket agent, each paying a fee of $10, they have an equal chance of getting the front-row ticket.

a. What type of game is this? What will the noncooperative solution be?

b. Does the existence of the ticket agent make society better or worse off?

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