Question: Consider a game with two players who cannot communicate and can answer honestly or lic. If both answer honestly, each receives $100. IF one answers

Consider a game with two players who cannot communicate and can answer honestly or lic. If both answer honestly, each receives $100. IF one answers honestly and the other lies, the liar receives $500 and the honest player gets nothing If both lie, then each receives $50. 2. Describe the strategies and the payoffs

b. Construct the payoff matrix.

c. What is the equilibrium of this game?

d. Compare this game to the prisoners' dilemma. Are the games similar or different? Explain.

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