Two internet users need to transfer large files across the network at the same time. The files could be compressed or left uncompressed before they are transferred. Each uncompressed file places a load on the network which is 65% of its capacity while a compressed file only places a load of 20% on the network. If both users transfer uncompressed files, then the total offered load on the network would be larger than its capacity, i.e. 130%, which will result in severe disruption of file throughput. The network will be able to cope if one or more users compress their files before transfer resulting in a total offered load to the network of 85% or 40% respectively. However, the transmission time of compressed files will be delayed since compression takes time and uncompressed files are transferred before the compressed ones.

We assign the following actions.

c = compress file , and c_ = uncompress file

to the user. The payoffs of the various outcomes are:

if both users take the same action , i.e., to compress or not to compress their files, then they will each get the payoff

a11 = 1/6 (100 total offered load) TT11

where Tcc= 7 and Tc_c_= 5.Also, total offered load = 100 capacity.

if one user compressed his file while the other one didn't, then the one who did gets 0 while the one who didn't gets the payoff given by the above equation but with TTcc_= -2.5.

Task: Express the above game in strategic (normal) form.