Question: (a) Consider the game in the following table, where .s7 and s2 are strategies available to player 1„53 and 4' are strategies available to player 2, and entries in the table are payoffs to the two players with that of player 1 listed first.

Assuming both agents are rational, what is the Nash equilibrium of this game?

(b) Compare the game in (a) with the game in the following table,

Are the following statements true or false? Briefly justify your answers.

(i) This game differs fundamentally from that. in (a) in that. neither player has a dominant strategy.

(ii) This game differs fundamentally from that in (a) in that neither player earns their highest possible payoff in the unique Nash equilibrium.