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Mathematics for Economy Question on Linear Algebra

Which of the following statements is CORRECT for Game A and Game B?
Game A: Mary wants to watch a movie and John is interested in watching a football match. Both wish to be together. The payoff matrix is:
Game A: Mary wants to watch a movie and John is interested in watching a football match. Both wish to be together. The payoff matrix is:

| Game B : The Prisoner's dilemma problem is shown below:
Game B: The Prisoner's dilemma problem is shown below:

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A

In Game A. (Movic, Football) and (Football, Movie) represent Nash equilibrium. In Game B, (Do not confess, Do not confess) is the Nash Equilibrium.

B

In Game B, (Confess, Confess) is not a Nash equilibrium but in Game A, both (Movie, Football) and (Football, Movie) represent Nash equilibrium.

C

In Game B, the Nash equilibrium is (Do not confess, Do not confess).

D

In Game A, both (Movic, Movie) and (Football, Football) represent Nash equilibrium. In Game B, the Nash equilibrium is (Confess, Confess).

Answer

In Game A, both (Movic, Movie) and (Football, Football) represent Nash equilibrium. In Game B, the Nash equilibrium is (Confess, Confess).

Explanation

Solution

The correct option is (D): In Game A, both (Movic, Movie) and (Football, Football) represent Nash equilibrium. In Game B, the Nash equilibrium is (Confess, Confess).