Scenario 12.2: Shari needs a kidney, and her two friends, Jerome and Eliza, are both good potential donors. If Shari gets a kidney, she will live and each of her two friends will get 8,000 units of satisfaction. If Shari does not get a kidney, she will die and each of her friends will get no satisfaction. The cost of donating a kidney totals - 6,000 units of satisfaction.
-Refer to Scenario 12.2. In this game, there is (are)

Question

Quizplus · Accepted Answer

In this scenario, there are two Nash equilibria. Each occurs when one friend decides to donate a kidney (gaining 2,000 units of satisfaction after accounting for the cost) and the other does not donate (gaining 8,000 units of satisfaction because Shari lives). This setup ensures that no player has an incentive to change their decision unilaterally, satisfying the condition for Nash equilibrium.