4. Sam and Billy are two young men both interested in dating the fair Courtney w
ID: 1209046 • Letter: 4
Question
4. Sam and Billy are two young men both interested in dating the fair Courtney who lives in her own apartment. They are the last two people at a party she has hosted, and they each want a chance to be alone with her to tell her how much she means to them. If they are both there, neither one of them says anything, and as long as they are waiting they just are wasting their time. On the other hand, if they both leave, they gain or lose nothing.
b) Below is another set of payoffs. What do these payoffs say about the attitudes of Sam and Billy? What is the equilibrium now?
BILLY
SAM
Stay
Leave
Stay
-5, -5
100, -75
Leave
-100, 75
0, 0
BILLY
SAM
Stay
Leave
Stay
-5, -5
100, -75
Leave
-100, 75
0, 0
Explanation / Answer
Both of them will leave. This is the equilibrium.
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