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An old lady is looking for help crossing the street. Only one person is needed t

ID: 2703937 • Letter: A

Question

An old lady is looking for help crossing the street. Only one person is needed to help her; more are okay but no better than one. You and I are the two people in the vicinity who can help; we have to choose simultaneously whether to do so. Each of us will get pleasure worth a 3 from her success (no matter n'ho helps her). But each one who goes to help will bear a cost of1, this being the r-alue of our time taken up in helping. set this up as a game.  Write the paYoff table, and find all pure-strategy Nash equilibria.

Explanation / Answer

2nd person helping

2nd person not helping

1st person helping

2,2

2,-2

1st person not helping

-2,2

-2,-2

As the gain in helping is more the nash point is that both will come to help

2nd person helping

2nd person not helping

1st person helping

2,2

2,-2

1st person not helping

-2,2

-2,-2