Question 3 Consider the game in figure 3. Player 1 Player 2 L R T 3,3...

 

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Question 3 Consider the game in figure 3. Player 1 Player 2 L R T 3,3 1,4 B 4,1 2,2 Figure 3: A Prisoner's Dilemma game. Assume that the payoffs in the figure are $ values. (i) Assume that both players have risk neutral utility functions. Find all of the Nash equilibria of this game. (ii) Next, assume that the row player has other regarding preferences with a = 0 and 3 = 1 (while the column player has the same preferences as before). Find all of the Nash equilibria of this game. (iii) Next, assume that both players have other regarding preferences with a = 0 and 8=. (iv) Compare your results from parts (ii) and (iii). Using these results, explain one possible mechanism through which a public advertising campaign that announces how often people donate to charity could help generate more cooperative play in prisoner's dilemma-like scenarios. Question 3 Consider the game in figure 3. Player 1 Player 2 L R T 3,3 1,4 B 4,1 2,2 Figure 3: A Prisoner's Dilemma game. Assume that the payoffs in the figure are $ values. (i) Assume that both players have risk neutral utility functions. Find all of the Nash equilibria of this game. (ii) Next, assume that the row player has other regarding preferences with a = 0 and 3 = 1 (while the column player has the same preferences as before). Find all of the Nash equilibria of this game. (iii) Next, assume that both players have other regarding preferences with a = 0 and 8=. (iv) Compare your results from parts (ii) and (iii). Using these results, explain one possible mechanism through which a public advertising campaign that announces how often people donate to charity could help generate more cooperative play in prisoner's dilemma-like scenarios.

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i In a Prisoners Dilemma game with riskneutral utility functions the Nash equilibrium is the strategy profile where no player can improve their payoff ... View the full answer