A big monkey and a small monkey eat coconuts which dangle high above the ground on...
A big monkey and a small monkey eat coconuts which dangle high above the ground on a coconut palm. One of them (at least) must climb the tree to shake a coconut fruit down. Then both can eat it. The one who does not climb has a head start in eating the fruit. If big monkey climbs the tree he incurs an energy cost of 2 kilocalories (Kc). Small monkey, being so small, does not incur any energy cost from climbing the tree. Suppose that one coconut can supply 10 Kc of energy and is divided between the two monkeys as follows: Big monkey eats 6 Kc 8 Kc 7 Kc Small monkey eats If only big monkey climbs If only small monkey climbs If both monkeys climb 4 Kc 2 Kc 3 Kc a. Assuming decisions are made simultaneously and payoffs are net of energy costs, write this game in normal form being clear to state the players, strategies and payoffs. b. Does either player have a dominant strategy in this game? A weakly dominant strategy? Explain why or why not. c. What is/are the Nash equilibrium/equilibria of this game? d. After eating coconuts, small monkey gets larger and also incurs an energy cost of 2Kc for climbing the tree, just as big monkey does. Assuming the division of fruit remains unchanged as in the table above, redo parts a-c.