# Two classmates A and B are assigned an extra credit group project. Each student can choose to

## Question:

Two classmates A and B are assigned an extra credit group project. Each student can choose to Shirk or Work. If one or more players choose Work, the project is completed and provides each with extra credit valued at 4 payoff units each. The cost of completing the project is that 6 total units of effort (measured in payoff units) is divided equally among all players who choose to Work and this is subtracted from their payoff. If both shirk, they do not have to expend any effort but the project is not completed, giving each a payoff of 0. The teacher can only tell whether the project is completed and not which students contributed to it.

a. Write down the normal form for this game, assuming students choose to Shirk or Work simultaneously.

b. Find the Nash equilibrium or equilibria.

c. Does either player have a dominant strategy? What game from the chapter does this resemble?

## Step by Step Answer:

**Related Book For**

## Intermediate Microeconomics and Its Application

**ISBN:** 978-0324599107

11th edition

**Authors:** walter nicholson, christopher snyder