Economic Analysis of Social Issues 1st Edition by Alan Grant

Exercise 25

Modify the original sit-in problem described in the text to incorporate the following changes. There are three places to meet: the coffee shop, the auto shop, or the library. If all three players meet in the same place, an excellent sit-in will be organized, and everyone will receive a payoff of 2. If two of the three meet in the same place, a decent sit-in will be organized, and everyone will receive a payoff of 1. If nobody meets in the same place, the sit-in will fail, and everybody will receive a payoff of 0. Create a payoff matrix that incorporates these changes.