The Lahore Metro Bus is crowded for travel during peak hours. During such travel hours two daily passengers ‘Ali’ and ‘Hassan’ enter the Metro. Luckily, two adjacent seats are free in the bus. Each of them must decide whether to sit or stand. For both, sitting alone is more comfortable than sitting next to the other person, which in turn is more comfortable than standing. (Note: for all parts below consider Ali as ‘row player’ and Hassan as ‘column player’). Show ALL steps and working in support to your answers a) Model the situation as a strategic game, assuming both ‘Ali’ and ‘Hassan’ care only about their own comfort. b) Find the Nash equilibrium (equilibria) if it exists. c) Does a dominant strategy exist for either ‘Ali’ or ‘Hassan’?
Question-2
The Lahore Metro Bus is crowded for travel during peak hours. During such travel hours two daily passengers ‘Ali’ and ‘Hassan’ enter the Metro. Luckily, two adjacent seats are free in the bus. Each of them must decide whether to sit or stand. For both, sitting alone is more comfortable than sitting next to the other person, which in turn is more comfortable than standing.
(Note: for all parts below consider Ali as ‘row player’ and Hassan as ‘column player’).
Show ALL steps and working in support to your answers
a) Model the situation as a strategic game, assuming both ‘Ali’ and ‘Hassan’ care only about their own comfort.
b) Find the Nash equilibrium (equilibria) if it exists.
c) Does a dominant strategy exist for either ‘Ali’ or ‘Hassan’?
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