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Table: Cell Service Refer to the Table

Question 147

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Table: Cell Service  Mr. Brooks  Cell Service A  Cell Service B  Ms. Gertrude  Cell Service A 50,505,10 Cell Service B 10,575,75 a.  What is(are) the Nash equilibrium(s) in this  coordination game?  b.  Which equilibrium will Mr. Brooks and Ms.  Gertrude end up at? Explain your answer.  c.  Does the coordination game get easier or  harder if there are 100 friends instead of just  2? Explain. \begin{array}{l}\begin{array} { | l | c | r | r } \hline & \text { Mr. Brooks } & { } \\\hline & & \text { Cell Service A } & \text { Cell Service B } \\\hline \text { Ms. Gertrude } & \text { Cell Service A } & 50,50 & 5,10 \\\hline & \text { Cell Service B } & 10,5 & 75,75 \\\hline\end{array}\\\begin{array} { | l | l } \hline \text { a. } & \begin{array} { l } \text { What is(are) the Nash equilibrium(s) in this } \\\text { coordination game? }\end{array} \\\hline \text { b. } & \begin{array} { l } \text { Which equilibrium will Mr. Brooks and Ms. } \\\text { Gertrude end up at? Explain your answer. }\end{array} \\\hline \text { c. } & \begin{array} { l } \text { Does the coordination game get easier or } \\\text { harder if there are } 100 \text { friends instead of just } \\\text { 2? Explain. }\end{array} \\\hline\end{array}\end{array}
Refer to the table. Mr. Brooks and Ms. Gertrude are good friends who like to talk on the phone. Each is deciding on a cell phone service to sign on with, where each service offers free unlimited calls to other customers who subscribe to the same service. The payoff table shows the rewards to Mr. Brooks and Ms. Gertrude from choosing either cell service A or B.

Correct Answer:

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a. There are two Nash equilibriums-(A,A)...

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