• Consider the following game: However, this matrix does not represent the true players' preferences since they care not only about their own earnings but also about other players'. Suppose mi(a) is the amount of money that player i gets and mj(a) is the amount that player j gets. So the payout for player i is mi(a)+mj(a) where 0. What happens if it equals 0? For example,

the payout for player one of the profile (C,C) is

u1(C,C) = 2 + 2

and the payout for player 1 of the stock profile (NC,NC) is

u1(NC,NC) = 1 + 1

• Matrix:

Player 2

NC C

Player 1 NC 1, 1 3, 0

C 0, 3 2, 2

1. Write the normal form of this game for = 1. Is this a game of the prisoner's dilemma?

2. Find the values for which the resulting game is a dilemma

of the prisoner? For values for which this game is not a prisoner's dilemma, find Nash's balance(s)