Question: Two graduate students are engaged to one another, and both are working on their master's theses-Michael in music education and Kristen in political science. Because

Two graduate students are engaged to one another, and both are working on their master's theses-Michael in music education and Kristen in political science. Because both have incomes that are tied to their academic achievement, and because they plan to marry and share household income, each wants the other to complete the thesis. However, Kristen is having a motivational crisis, and she doesn't want to complete her thesis.

a. How do the payoffs in the table reflect Kristen's motivational crisis? Explain.
b. What is the Nash equilibrium in this game?
c. Michael would like Kristen to complete her thesis. He tells Kristen, "If you don't complete your thesis, then I'm not going to complete mine." Explain, using the numbers from the payoff matrix, why this threat is not immediately credible.
d. Suppose that Kristen believes Michael's threat. Explain, referring to the payoffs in the table above, why this threat should be sufficient to motivate Kristen to complete her thesis.

Kristen Complete ThesisDon't Complete Complete Thesis 11.6 8,8 Michael plic 7,2 4,4

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