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Would both be happy about the outcome and why

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1. Suppose Ann is working on a project with John. Both must decide whether to put into a decent amount of effort into the project. Since Ann is the leader of the project, her contribution determines whether the project will be successful. If she puts into a decent amount of effort, the project will be finished on time and each will enjoy 3 units of benefit. If she decides not to do so, the project will not be finished on time, neither one will get benefit. Suppose a decent amount of effort incurs a cost of 1 unit for each person. Use the normal form represent the situation and identify the Nash Equilibrium if there is any. Would both be happy about the outcome and why?

Reference no: EM13979628

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