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What is the nash equilibrium

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The 100-meter Olympic gold medalist and the 200-meter Olympic gold medalist have agreed to a 150-meter duel. Before the race, each athlete decides whether to improve his performance by taking anabolic steroids. Each athlete's payoff is 20 from winning the race, 10 from tying, and 0 from losing. Furthermore, each athlete's utility of taking steroids is -6. Model this scenario as a game in which the players simultaneously decide whether to take steroids.

a) What is the Nash equilibrium? Is the game a prisoners' dilemma? Explain.

b) Suppose that one athlete's utility of taking steroids is -12, while the other's remains at -6. What is the Nash equilibrium? Is the game a prisoners' dilemma? Explain.

Reference no: EM132542105

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