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18. Consider a simultaneous game where
two players each contribute effort to a
project. Player 1’s effort is X1 and Player 2’s
effort is X2. The players’ payoffs in this
game are given by: U1 = —X12 + 2X1 — X2 (Player 1)
U2 = —X22 + 2X2 — X1 (Player 2) What is the Nash equilibrium of this game? X1=2, X2=2 X1=0, )Q=0 @EEE X1=2, )c=1 E] X1=1, )c=2 IE X1=l, X2=l

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