-Professor Nash Teaches Game Theory at Gigantic State University (GSU)

Multiple Choice

-Professor Nash teaches game theory at Gigantic State University (GSU) . Just prior to the final exam, Professor Nash announces that students who score in the top half of the class will receive an A, while students who score in the bottom half will receive an F. There are just two types of students at GSU: Egg heads and knot heads. The students must decide whether to study for the final exam or not study and party. The payoffs for this game are summarized in Figure 6.7. If larger payoffs are preferred, the mixed-strategy Nash equilibrium strategy profile for this game is:

A) {Study, Study}.
B) {Party, Study}.
C) {Study, Party}.
D) {Party, Party}.
E) None of the above pure strategy profiles are correct.