The 100-meter Olympic gold medalist and the 200-

meter Olympic gold medalist have agreed to a 150-

meter duel. Before the race, each athlete decides whether to improve his performance by taking anabolic steroids. Each athlete’s payoff is 20 from winning the race, 10 from tying, and 0 from losing.

Furthermore, each athlete’s utility of taking steroids is

-6. Model this scenario as a game in which the players simultaneously decide whether to take steroids.

a. What is the Nash equilibrium? Is the game a prisoners’ dilemma? Explain.

b. Suppose that one athlete’s utility of taking steroids is -12, while the other’s remains at -6.

What is the Nash equilibrium? Is the game a prisoners’ dilemma? M