Consider the following payoff matrix for a 2-player game where the payoffs have the usual connotation. The first number in each cell represents the payoff to Player #1 and the second number the payoff to Player #2.
(a) What is/are the Nash equilibrium/equilibria of this game? (b) Explain your answer very briefly. (c) Suppose the two players have each bought a ticket worth $8 to play this game. Both players know that the other player has paid $8.00 to play the game. How do you think the payment of this fee may change the equilibrium outcome of the game from one where no such fee is paid?

Question

Consider the following payoff matrix for a 2-player game where the payoffs have the usual connotation. The first number in each cell represents the payoff to Player #1 and the second number the payoff to Player #2.
  (a) What is/are the Nash equilibrium/equilibria of this game? (b) Explain your answer very briefly. (c) Suppose the two players have each bought a ticket worth $8 to play this game. Both players know that the other player has paid $8.00 to play the game. How do you think the payment of this fee may change the equilibrium outcome of the game from one where no such fee is paid?

Consider the Following Payoff Matrix for a 2-Player Game Where