Question: please solve the following game theory problem: EXERCISE 27.1 (Variant of Prisoner's Dilemma with altruistic preferences) Each of two players has two possible actions, Quiet

please solve the following game theory problem:

please solve the following game theory problem: EXERCISE 27.1 (Variant of Prisoner'sDilemma with altruistic preferences) Each of two players has two possible actions,

EXERCISE 27.1 (Variant of Prisoner's Dilemma with altruistic preferences) Each of two players has two possible actions, Quiet and Fink; each action pair results in the players' receiving amounts of money equal to the numbers corresponding to that action pair in Figure 26.1. (For example, if player 1 chooses Quiet and player 2 chooses Fink, then player 1 receives nothing, whereas player 2 receives $3.) The players are not "selfish"; rather, the preferences of each player i are represented by the payoff function mi(a) + am; (a), where m;(a) is the amount of money received by player i when the action profile is a, j is the other player, and a is a given non- negative number. Player I's payoff to the action pair (Quiet, Quiet), for example, is 2+ 2x. a. Formulate a strategic game that models this situation in the case a == 1. Is this game the Prisoner's Dilemma? b. Find the range of values of a for which the resulting game is the Prisoner's Dilemma. For values of a for which the game is not the Prisoner's Dilemma, find the Nash equilibria.\f

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