5. Game Theory (20 points) Consider this situation: a self-interested student would prefer to cheat, but cheating is worth it only if his teacher is not proctoring what he does. The teacher wants the student to work hard, but must incur costs to proctor the student's behavior. Student Cheats Studies Teacher Proctor -1, 0 5, 5 Doesn't -10, 10 10, 5 proctor a. What are the payoffs to the teacher and student if the teacher doesn't monitor and the student studies? b. How can the student improve his position in part a? c. If the student in part b decides to cheat, what then must the teacher do? d. Define Nash equilibrium. Is there a Nash equilibrium to this game? e. What is this type of game called? What should the strategy of the student and the teacher be? 6. (10 points) Consider this situation: a student and a professor. Student Cheats Studies Teacher Proctor -1,0 5,5 Doesn't -10,0 10,5 proctor a. How is this game different than above? b. Is there an equilibrium