Q3) Two individuals interacting simultaneously consider between wearing and not wearing a mask. Covid 19 masks protect only if both individuals wear them. The utility of staying healthy is 1. If one of the individuals does not wear, both of them will be covid-positive. The utility of an individual when he/she is a+b+c sick is 0. The cost of wearing a mask for an individual is A=- a+b+c+d+e+f+g+h° Find all Nash equilibria including mixed strategies, and show them on the graph

Q3) Two individuals interacting simultaneously consider between wearing and not wearing a mask. Covid 19 masks protect only if both individuals wear them. The utility of staying healthy is 1. If one of the individuals does not wear, both of them will be covid-positive. The utility of an individual when he/she is a+b+c sick is 0. The cost of wearing a mask for an individual is A=- a+b+c+d+e+f+g+h° Find all Nash equilibria including mixed strategies, and show them on the graph

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.3P

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