Refer to Figure 3.5. Answer the following questions about the game represented in the figure:
a. What type of game is represented by the payoff matrix?
b. Does Donald have a dominant strategy, and if so, what is it?
c. Does Donald have a dominant strategy, and if so, what is it?
d. What is the cooperative solution?
e. What is the Nash equilibrium?
a. This represents a prisoner's dilemma game.
b. Donald's dominant strategy is to Shout.
c. Daisy's dominant strategy is to Shout.
d. The cooperative solution is for each player to Twist.
e. The Nash equilibrium occurs where both players Shout.
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