Suppose that one athletes utility of taking steroids is


Two stars-the 100-meter gold medalist and the 200- meter gold medalist-from the a past Olympic Games have agreed to a 150-meter duel. Before the race, each athlete decides whether to improve his performance by taking anabolic steroids. Each athlete's payoff is 20 from winning the race, 10 from tying, and 0 from losing. Furthermore, each athlete's utility of taking steroids is Model this scenario as a game in which the players simultaneously decide whether to take steroids.

a. What is the Nash equilibrium? Is the game a prisoners' dilemma? Explain.

b. Suppose that one athlete's utility of taking steroids is while the other's remains What is the Nash equilibrium? Is the game a prisoners' dilemma?

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Econometrics: Suppose that one athletes utility of taking steroids is
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