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Consider the following game [payoffs are in the form: (Ann, Bob, Carol)]:
a) List each player's actions and strategies.
b) If Ann "buys" Carol's position in the game (i.e., she moves for Carol and collects Carol's payoffs in addition to her own), what are her new strategies?
c) The game is represented above in what form? Represent the new game in the normal (strategic) form.
d) If Ann cannot observe Bob's actions, draw this game in the two standard forms.
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PREPARE AN ESSAY ON THE CONCEPT OF MAXIMIZATION AND THE ASSUMPTIONS ASSOCIATED WITH THE BEHAVIOR OF THE ECONOMIC MAN
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