2. Maggie and Cornelius are 2 siblings that have moved off to university. They love music...

Transcribed Image Text:

2. Maggie and Cornelius are 2 siblings that have moved off to university. They love music and they are each debating purchasing streaming plans with Apple Music, Spotify, or Google Play. In addition to the 2 points of happiness that each sibling receives from access to a music streaming network, they receive 2 extra units of happiness when they both have the same streaming service because they can share playlists that way. Maggie has a preference for Apple Music worth 1 point of happiness and Cornelius has a preference for Spotify worth 1 point of happiness. a. Create a 3x3 decision matrix that represents the happiness derived from Maggie and Cornelius's streaming service choice. b. Is there a Nash equilibrium in this game? Are there multiple? If so, find it/them. C. What is this game called? What are possible outcomes? d. Suppose Spotify offers 6-month contracts (6 month payment upfront) while Apple music is month by month, what would this achieve? 2. Maggie and Cornelius are 2 siblings that have moved off to university. They love music and they are each debating purchasing streaming plans with Apple Music, Spotify, or Google Play. In addition to the 2 points of happiness that each sibling receives from access to a music streaming network, they receive 2 extra units of happiness when they both have the same streaming service because they can share playlists that way. Maggie has a preference for Apple Music worth 1 point of happiness and Cornelius has a preference for Spotify worth 1 point of happiness. a. Create a 3x3 decision matrix that represents the happiness derived from Maggie and Cornelius's streaming service choice. b. Is there a Nash equilibrium in this game? Are there multiple? If so, find it/them. C. What is this game called? What are possible outcomes? d. Suppose Spotify offers 6-month contracts (6 month payment upfront) while Apple music is month by month, what would this achieve?

Answer rating: 100% (QA)

a Decision Matrix Apple Music Spotify Google Play Apple Music 4 3 2 Spotify 3 4 1 Google Play 2 1 2 ... View the full answer