Question: 4. Consider the following two player game. The first payoff represents player 1 and the second player 2. For each problem, you must show your

4. Consider the following two player game. The first payoff represents player 1 and the second player 2. For each problem, you must show your work. Player 2 In Out Player 1 In $16, $16 $25, $0 Out $0, $25 $27, $27 (a) If player 1 and player 2 are selfish, ui = Ci, what are the (pure) Nash equilibrium? [5 pts] (b) If player 1 is a utilitarian and player 2 is envious, u2 = VX2 - VX1, what are the (pure) Nash equilibrium? (Assume that player 1 weighs all players equally, which is what we have done in class.) [10 pts]

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