ECON 2112. PROBLEM SET 1DUE: 5 PM, 26 FEBRUARY (FRIDAY)Note: In some exercises below you will find the expression “pure strategy”. By that we mean the kindof strategies that we have seen in the first week (particularly, in parts 1 and 2 of Week 1 Lecture Video).Later we will introduce concept ofmixed strategiesand the terminology will become clear.Exercise 1. Stag Hunt GameTwo individuals go out on a hunt. Each can individually choose to hunt a stag or hunt a hare. Eachhunter must choose an action without knowing the choice of the other. The only way of hunting a stag isthat both hunters choose to hunt it. An individual can always get a hare by himself, but a hare is worthless than a stag. To be precise, each hunter will get a payoffequal to two for successfully hunting a stag.A hunter will get a payoffequal to one for hunting a hare. Finally, a hunter will get a payoffequal tozero if she does not hunt anything.