Column Player
a b c d
A 3,1 0,0 0,0 5,0
Row B 0,0 1,3 0,0 0,0
Player C 0,0 0,0 2.5,2.5 0,0
D 0,0 0,5 0,0 4,4
a) Find the outcome that is best for both players.
b) Find all pure-strategy Nash equilibria of this game.
c) Suppose that players play this game twice. Is it possible to achieve cooperation in this game by making a promise (reward/punishment)?
d) Do we have the problem of renegotiation in this game? Explain why.