3. Two people are collaborating on a task that won't get done unless they both work...

Transcribed Image Text:

3. Two people are collaborating on a task that won't get done unless they both work at it. Working incurs a certain cost, but the benefit of completing the task outweighs this cost. However, if only one person chooses to work, the work is wasted because the task is not completed. This is summarized by the following game table, where < < C < 1: work lazy work lazy 1c, 1-cc,0 0,-c 0,0 Find all the Nash equilibria of the mixed extension of this game. How do the equilibria change as increases? Explain. 3. Two people are collaborating on a task that won't get done unless they both work at it. Working incurs a certain cost, but the benefit of completing the task outweighs this cost. However, if only one person chooses to work, the work is wasted because the task is not completed. This is summarized by the following game table, where < < C < 1: work lazy work lazy 1c, 1-cc,0 0,-c 0,0 Find all the Nash equilibria of the mixed extension of this game. How do the equilibria change as increases? Explain.