Two people are to take an exam and the professor has instructed them that the student with the higher score will receive

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Two People Are To Take An Exam And The Professor Has Instructed Them That The Student With The Higher Score Will Receive 1 (324.99 KiB) Viewed 40 times

Two people are to take an exam and the professor has instructed them that the student with the higher score will receive a grade of A and the person with the lowest score will receive a B. Student l's score equals x, +1.5 where x, is the amount of effort that he invests in studying. Student 2's score equals x, where x, is the amount of effort that he invests in studying. (Implicitly it is assumed that student 1 is smarter.) Assume x, and xz can take any value in [0,1,2,3,4,5]. The payoff to student i is 10 – x; if he gets an A and 8- x; if he gets a B for i=1 and 2.