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QUESTION

Game theory : Three city politicians vote on whether to allow themselves a salary increase of $2,500 per year.

Game theory :

Three city politicians vote on whether to allow themselves a salary increase of $2,500

per year. Voters would dislike it if the politicians vote for a salary increase, and a

politician who votes for one would face public scorn. Assume that public scorn costs

a politician $1,000 per year. Suppose that the politicians vote at the same time, and

cannot observe each others' voting. Which of the following is NOT a Nash equilibrium

of this game?

(A)

All three legislators vote against the pay raise.

(B)

Legislator 1 and 2 vote for the pay raise, while Legislator 3 votes against it.

(C)

Legislator 3 and 2 vote for the pay raise, while Legislator 1 votes against it.

(D)

All three vote for the pay raise

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