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Two partners start a business. Each has two possible strategies, work full time or secretly take a second job and work only part time on the business. Any profits that the business makes will be split equally between the two partners, regardless of whether they work full time or part time for the business. If a partner takes a second job, he will earn $60,000 from this job plus his share of profits from the business. If he works full time on the business, his only source of income is his share of profits from this business. If both partners work full time on the business, total profits will be $200,000. If one partner works full time on the business and the other takes a second job, the business profits will be $80,000. If both partners take a second job, the total business profits are $20,000.
(i) Draw the payoff matrix for this game.
(ii) Elucidate any possible Nash equilibria in pure strategies for this game.
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