Write down the strategic form of this game

Reference no: EM133276536

Question - Aron and Nora are taking this phenomenally interesting economics class together. They both think that the other one is very cute and they really like each other. But they are too shy to arrange a date. This weekend two groups of people from the class are going out for drinks. An opportunity to meet "by accident" that Aron and Nora do not want to miss. The only problem is that there are two events, one uptown and one downtown. So Aron and Nora each have to decide which one to attend. Aron lives uptown and Nora downtown. Aron is in a bad way and just wants to meet Nora. Nora's main objective is to meet Aron, but she would also prefer to be close to home. So if they both go to the uptown event, Aron's payoff is 3 and Nora's 2. If they both end up at the downtown event, then Aron's payoff is 3 and Nora's 5. Finally, if they end up at different events then not having to travel far is the only consolation: for both of them the payoff from a party without the other is 0 if it is far from home and 1 if it is close to home.

1. Write down the strategic form of this game.

2. Find all (pure-strategy) Nash equilibria.

3. What do you think is most likely to happen in the game? No formal calculations are needed. Just give an intuitive explanation of your answer.

Reference no: EM133276536

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