Last term, in EC311, there were only two students, Amy and Aimee. As there were

Question

Last term, in EC311, there were only two students, Amy and Aimee. As there were only two students in the class, I decided the only fair thing to do was to grade on a curve: the student with the highest score would get an A+, and the student with the lowest score would get an A-. The student who studies more will score a higher grade on the test.now except both young women receive disutility from studying. Studying "a little" doesn't cost them anything, however, studying "a lot" costs them each 2 units of utility. As before, an A+ adds 5 units of utility, while an A- adds 0. Identify all the pure strategy Nash equilibria in this game.choose one of the following: a)Aimee studies a little, Amy studies a little. b)Aimee studies a little, Amy studies a lot. c)Aimee studies a lot, Amy studies a little. d)Aimee studies a lot, Amy studies a lot. f)No pure strategy Nash Equilibrium exists.

Explanation / Answer

b)Aimee studies a little, Amy studies a lot.

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