Question: Supposing there are three players, each player is given a bag and asked to contribute in his own money with one of the three ammmt

 Supposing there are three players, each player is given a bag

Supposing there are three players, each player is given a bag and asked to contribute in his own money with one of the three ammmt {$0, $3, $6}. A referee collects all the money from the three bags and then doubles the amount using additional money. Finally, each player share the whole money equally. For example, if both Players 1 and 2 put $0 and Player 3 puts $3, then the referee adds another $3 so that the total becomes $6. After that, each player will obtain $2 at the end. Every player want to maximise his prot, but he does not know the amount contributed from other players. [Hint: prot 2 money he obtained money he contributed] (a) Compute the prots of each player under all strategy combinations and make the payoff matrix for the three players. [Hintz you can create multiple payoff tables to demonstrate the strategy combinations. The referee is not a player and should not be in the payoff table] [10 Marks] (b) Find the Nash equilibrium of this game. 'What are the prots at this equilibrium? Explain your reason clearly. [10 Marks]

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