Consider a game with two players who cannot communicate and can answer honestly or lie. If both answer honestly, each receives $100. If one answers honestly and the other lies, the liar receives $500 and the honest player gets nothing. If both lie, then each receives $50. Describe the strategies and the payoffs. What is the equilibrium of this game? Player I (red squares) Tell the truth Tell the truth $ $ Compare this game to the prisoners' dilemma. Are the games similar or different? Explain. Player II (blue squares) The strategies are A. receiving $500 or receiving nothing B. playing the game or not playing the game C. receiving $100 or receiving $50 'D. answering honestly or answering with a lie Fill in the payoffs in the matrix on the right. - Lie $ $ $ $ Lie $
Consider a game with two players who cannot communicate and can answer honestly or lie. If both answer honestly, each receives $100. If one answers honestly and the other lies, the liar receives $500 and the honest player gets nothing. If both lie, then each receives $50. Describe the strategies and the payoffs. What is the equilibrium of this game? Player I (red squares) Tell the truth Tell the truth $ $ Compare this game to the prisoners' dilemma. Are the games similar or different? Explain. Player II (blue squares) The strategies are A. receiving $500 or receiving nothing B. playing the game or not playing the game C. receiving $100 or receiving $50 'D. answering honestly or answering with a lie Fill in the payoffs in the matrix on the right. - Lie $ $ $ $ Lie $
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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