Rosewood College and Elmwood College are the best private schools in the state. Each prides itself on its lacrosse team. If neither offers scholarships for promising players, then obviously the cost of scholarships will be zero. For $20,000 in scholarships, either could attract the best players (if the other did not offer scholarships), win the conference championship, and attract at least $50,000 in new donations. In this case, however, donations at the losing school would fall by $30,000. On the other hand, if both offered scholarships, there would be no advantage, no extra donations, and each would have spent the $20,000 for nothing. Clearly depict the payoff matrix of this game. What strategy will each school choose in the Nash equilibrium of this game?

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The Answer of Rosewood College and Elmwood College are the best private schools in the state. Each prides itself on its lacrosse team. If neither offers scholarships for promising players, then obviously the cost of scholarships will be zero. For $20,000 in scholarships, either could attract the best players (if the other did not offer scholarships), win the conference championship, and attract at least $50,000 in new donations. In this case, however, donations at the losing school would fall by $30,000. On the other hand, if both offered scholarships, there would be no advantage, no extra donations, and each would have spent the $20,000 for nothing. Clearly depict the payoff matrix of this game. What strategy will each school choose in the Nash equilibrium of this game?

Rosewood College and Elmwood College Are the Best Private Schools