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QUESTION

a) Draw a 2-player payoff matrix showing the payoffs for each player depending on if they and their competitor use drugs to enhance their performance...

a) Draw a 2-player payoff matrix showing the payoffs for each player depending on if they and their competitor use drugs to enhance their performance or not. Make up the numbers for this yourself to ensure that it depicts a 'prisoners dilemma' type situation as described where both parties will end up taking the drugs although they would both be better off if neither did.(Hint: The payoffs do not need to be in monetary terms, but can instead be thought of as utility, or an abstract numerical measure of their expected happiness/wellbeing.)

b) Explain, with the assistance of your constructed example, why this outcome is likely to arise based on the individual incentives faced by each player. Be sure to reference concepts such as best response, dominant strategy and Nash equilibrium.

c) If it is a one-off simultaneous move game, do you think that talking about the outcome in advance is likely to impact the outcome? Explain.

d) Suggest several ways in which this outcome could be avoided, and explain how these

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