) Suppose there are two fishers using a common canal for fishing. For this canal, there is an upper limit to the number of fish that can be caught in order to sustain the flow of the fish. For a two-person game, the cooperate strategy (or the C strategy) can be thought of as cashing F/2 amount of fish for each fisher. The defect strategy (or the D strategy) is for each fisher to fish as much fish as he thinks
he can sell at profit (given his private cost), assuming that this number is greater than F/2.
If both fishers limit their fishing to F/2, they will obtain 16 units of profit, whereas if they both choose the defect strategy they will obtain zero profit. If one of them limits the fishing to F/2, while the other fishes as much as he wants, the defect or obtains 19 units of profit, and the cooperator obtains -2.
If each chooses strategy independently but possesses complete information, what will be the equilibrium of this game? In other words, what will be each fisher’s chosen strategy? Why? Illustrate your answer.
) Suppose there are two fishers using a common canal for fishing. For this canal, there is an upper limit to the number of fish that can be caught in order to sustain the flow of the fish. For a two-person game, the cooperate strategy (or the C strategy) can be thought of as cashing F/2 amount of fish for each fisher. The defect strategy (or the D strategy) is for each fisher to fish as much fish as he thinks he can sell at profit (given his private cost), assuming that this number is greater than F/2. If both fishers limit their fishing to F/2, they will obtain 16 units of profit, whereas if they both choose the defect strategy they will obtain zero profit. If one of them limits the fishing to F/2, while the other fishes as much as he wants, the defect or obtains 19 units of profit, and the cooperator obtains -2. If each chooses strategy independently but possesses complete information, what will be the equilibrium of this game? In other words, what will be each fisher’s chosen strategy? Why? Illustrate your answer.
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