Question

QUESTION 1 Which of the following is a strategic interaction? Buying a coffee at Starbucks. Ordering dinner from GrubHub. Deciding whether to watch 'Bojack Horseman' or a Ken Burns documentary on Netflix. Deciding when to post on Instagram (you're an influencer!) to maximize likes, knowing that if you post at the same time as other influencers, your post will get less attention. QUESTION 2 Which of the following is a Nash Equilibrium? Everybody in pro cycling uses performing enhancing drugs, so if you don't use them too, you will get left behind (literally). Disney+ is too expensive, so you don't buy it. After weighing the expected costs and benefits, you decide to lie on your tax return. Steve Nash, an NBA legend, starts a second career in pro soccer.

Answer 1

Answer 1

Since last option involved more than 1 player, it is a strategic interaction. Persons posting are players and likes are the payoff in this game.

Answer 2

Here as well in first option involves more than one player, decision is to be made whether to use performance enhancing drugs or not. Hemce first option is a nash equilibrium.