Question: escribe two substantive policy issues (not discussed in class or the book): one where you think people are trapped in a coordination trap, and one
escribe two substantive policy issues (not discussed in class or the book): one where you think people are trapped in a coordination trap, and one where you think there is an externalities problem. For each case, do the following: (a) Write down a simple game illustrating the problem. i. Who are the players? Assume there are only 2. ii. What are their strategies? iii. What are the strategy profiles? iv. How does each player rank the strategy profiles? v. Draw the matrix for this game. vi. Find Nash equilibrium(a). 1
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