Three persons, Ann, Bob and Chad, have to decide to work or shirk in a group project. Payoffs are given according to the following information.

• The three group members will receive the Sante grade.

• If at least two group members work the grade assigned will be good, giving each student four units of payoff.

• If only one group member works the grade assigned will be mediocre, giving each student two units of payoff.

• If no group member works the grade assigned will be bad, giving each student zero units of payoff.

• Working implies an effort worth losing one unit of payoff.

(a) Create the payoff matrix for this three-player game.

(b) Does any player have a dominant strategy?

(c) What are the pure strategy NE of the game?

Answer rating: 100% (QA)

Payoff Table can be drawn as follows When any of the two player is working they will get 4 1 3 and other who is shirking will get 4 Hence following ca... View the full answer