Question

Suppose Ishmael and Santiago are the only two fishermen who fish in Lake Hardin. Each must choose between fishing for 20 hours per week or for 40 hours per week. If both choose to fish for 20 hours per week, then each can earn a profit of $3,000 per week. If both choose to fish for 40 hours per week, then each can earn a profit of $2,000 per week. If Santiago fishes for 40 hours per week, and Ishmael fishes for 20 hours per week, then Santiago can earn a profit of $4,000 per week, and Ishmael can earn a profit of $1,000 per week. If Ishmael fishes for 40 hours per week, and Santiago fishes for 20 hours per week, then Ishm

Answer 1

3000,3000 1000,40000

4000,1000 2000,2000

b. Both men will fish for 40 hours per week.

c. Yes.

Step-by-step explanation:

Answer 2

Ishmael

20 hours 40 hours

20 hours (3000, 3000) (1000, 4000)

Santiago 40 hours (4000, 1000) (2000, 2000)

b) The NAsh equilibrium of the game of both men will fish for 40 hours.

c) Yes, the game is a prisoner's dilemma.