Refer to Figure 3.6. Answer the following questions about the game represented in the figure:
a. What type of game is represented by the payoff matrix?
b. Does Terrance have a dominant strategy, and if so, what is it?
c. Does Phillip have a dominant strategy, and if so, what is it?
d. At what outcome or outcomes do the players coordinate?
e. Are there any Nash equilibria, and if so, what, are they?
a. This represents an assurance game.
b. Terrance does not have a dominant strategy.
c. Phillip does not have a dominant strategy.
d. The players coordinate at (Terrance, Phillip) = (Bake, Sing), and at (Terrance, Phillip) = (Shake, Dance).
f. The Nash equilibria occur at (Terrance, Phillip) = (Bake, Sing), and at (Terrance, Phillip) = (Shake, Dance).
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