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Unformatted text preview: lth costs and the expected damage to their reputation if they are caught). If both cyclists dope or if both cyclists don’t dope, then each has a 50 percent change of winning the race. On the other hand, if only one of them dopes, then the one who dopes will win the race for sure. a. Write down the expected payoff matrix for this game, assuming that both Lance and Eddy make their decisions to dope simultaneously. b. Are any strategies dominated? If so, which? c. What is the Nash equilibrium of this game? d. Is this a prisoner...
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This note was uploaded on 02/13/2014 for the course ECON 2 taught by Professor Kim during the Winter '08 term at UCSD.
 Winter '08
 Kim

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