(Selfish and altruistic social behavior) Two people enter a bus. Two adjacent cramped seats are free. Each person must decide whether to sit or stand. Sitting alone is more comfortable than sitting next to the other person, which is more comfortable than standing.
a. Suppose that each person cares only about her own comfort. Model the situation as a strategic game. Is this game the Prisoner's Dilemma? Find its Nash equilibrium (equilibria?).
b. Suppose that each person is altruistic, ranking the outcomes according to the other person's comfort, and, out of politeness, prefers to stand than to sit if the other person stands. Model the situation as a strategic game. Is this game the Prisoner's Dilemma? Find its Nash equilibrium (equilibria?).
c. Compare the people's comfort in the equilibria of the two games.