Teens 4 and 8 are smitten with each other but neither knows of the other's feelings Suppose the teachers at their school organize a dance. The "payoff is based on whether their advances are rebuffed or accepted.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Teens 4 and B are smitten with each other but neither knows of the other's feelings. Suppose the teachers at their
school organize a dance. The "payoff is based on whether their advances are rebuffed or accepted.
Teen A
Declare
OOOO
Declare
Both Declare.
1. 10
Teen B
Ignore
Rebuff
The pure-strategy Nash equilibrium is (equilibria are)
10.-10
Ignore/
Rebuff
-10, 11
0,0
Both Ignore Rebuff.
There are two in one, both Declare, and in the other, both Rebuff Ignore.
There are two in both, the teens do the opposite of each other.
Transcribed Image Text:Teens 4 and B are smitten with each other but neither knows of the other's feelings. Suppose the teachers at their school organize a dance. The "payoff is based on whether their advances are rebuffed or accepted. Teen A Declare OOOO Declare Both Declare. 1. 10 Teen B Ignore Rebuff The pure-strategy Nash equilibrium is (equilibria are) 10.-10 Ignore/ Rebuff -10, 11 0,0 Both Ignore Rebuff. There are two in one, both Declare, and in the other, both Rebuff Ignore. There are two in both, the teens do the opposite of each other.
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