Question: An old man needs help crossing a street. Only one person is needed to help him; more are okay but no better than one. Two
An old man needs help crossing a street. Only one person is needed to help him; more are okay but no better than one. Two people are in the vicinity and have the possibility to offer help. They have to decide simultaneously whether to do so. Each of them will get pleasure worth 2 from the success of the old man in crossing the street (this pleasure is independent of whether they themselves helped the old man). The act of helping is costless to the helper. If neither of the potential helpers helps, the payoff for each of them is zero. 1. Write down the payoff table for this game between the two potential helpers. 2. Find all pure strategy Nash equilibria. 3. What is the likely outcome of this game is there a focal point)
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