Sally's Mom is pretty sure her twins,Tim and John,together cut the hair off Sally's Barbie doll.She talks to them separately and gives them the following options.If they both confess they will have to pay Sally $10 each.If Tim confesses and John does not confess,Tim pays $15 and John pays $8.If Tim does not confess and John confesses,Tim has to pay $8 and John $15.If both do not confess,they both pay her $14.Sally's Mom has them in separate rooms and they cannot talk to each other.
a.Complete the payoff matrix below.

b.If they reach the Nash equilibrium,what will Tim and John do?

Question

Sally's Mom is pretty sure her twins,Tim and John,together cut the hair off Sally's Barbie doll.She talks to them separately and gives them the following options.If they both confess they will have to pay Sally $10 each.If Tim confesses and John does not confess,Tim pays $15 and John pays $8.If Tim does not confess and John confesses,Tim has to pay $8 and John $15.If both do not confess,they both pay her $14.Sally's Mom has them in separate rooms and they cannot talk to each other.
a.Complete the payoff matrix below.
  
b.If they reach the Nash equilibrium,what will Tim and John do?

Quizplus · Accepted Answer

The Answer of Sally's Mom is pretty sure her twins,Tim and John,together cut the hair off Sally's Barbie doll.She talks to them separately and gives them the following options.If they both confess they will have to pay Sally $10 each.If Tim confesses and John does not confess,Tim pays $15 and John pays $8.If Tim does not confess and John confesses,Tim has to pay $8 and John $15.If both do not confess,they both pay her $14.Sally's Mom has them in separate rooms and they cannot talk to each other.
a.Complete the payoff matrix below.
  
b.If they reach the Nash equilibrium,what will Tim and John do?

Sally's Mom Is Pretty Sure Her Twins,Tim and John,together Cut