Question

An often unexamined strategic interaction occurs daily on college campuses across the world: choices among roommates regarding who will clean the room. This situation is modeled in the game below with two roommates: A'dreus and Marcus. Every day, each has a choice to clean the room or not to clean it. Both are happier with a clean room, but each is happiest when the other cleans and he doesn't. Each is least happy when he cleans and the other does not. The payoffs below can be interpreted as the utility each player receives. For example, if Marcus chooses not to clean and A'dreus chooses to clean, Marcus receives 120 utility and A'dreus receives 40 utility and vice versa. If both clean, each gets payoff of 100, and if none cleans, each get payoff of 60. a. Write the two-by-two game in matrix form with strategies and payoffs. Make Marcus row player and A’dreus column player. b. What is the Nash equilibrium outcome of the game? (5) Now suppose that Marcus is temperamental (we'll call him Angry Marcus) and will fly into a rage if A'dreus doesn't clean, resulting in an argument that lowers both players' payoffs by 40. A'dreus is more emotionally mature and can stay calm whether Marcus cleans or not. a. Write the game with new payoffs. b. Now what is the Nash equilibrium outcome?

Answer 1