Question

Consider the following group project example. Three students –Andrew, Dice, and Clay–simultaneously work together on a problem set for their game theory class. The instructor has asked them, in fact, to submit a joint problem set. Each student can choose to work hard (H) or goof off (G). If all three students work hard, their assignment will get an A; if at least two students work hard, the assignment will get a B; if only one student works hard, the assignment will get a C; and, finally, if nobody works hard the assignment will get an F. Denote the payoff function by Π; this payoff depends on the grade and the amount of work. For example, the payoff a student gets when he works hard and gets a grade of B is denoted by Π(H, B), and the payoff a student who goofs off and gets a B grade is Π(G, B). Note that you do not need to assign numerical payoffs here. You must assign payoffs for each of the players, at each of the terminal nodes using the notation just described. 1

Any assistance with this would be a tremendous help!!!

Answer 1