Question Two Consider a situation in which two suspects, 1 and 2, have been arrested for a crime. The police have little

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Question Two Consider A Situation In Which Two Suspects 1 And 2 Have Been Arrested For A Crime The Police Have Little 1 (44.63 KiB) Viewed 28 times

Question Two Consider a situation in which two suspects, 1 and 2, have been arrested for a crime. The police have little evidence to prove the crime and want them to confess. The two suspects are questioned in different rooms. The police offer the following deal to each of the suspects: • If none of the suspects confesses his crime, then they both will be sentenced to just 2 months in jail for a lesser crime. • If one suspect confesses his crime and the other doesn't, then the suspect who confesses will get 1-month in jail, while the suspect who denies will get 10 months in jail. • If both the suspects confess their crimes, they will get 5 months in jail each. i. Model the strategic form of the game ii. Explain the dominant strategy of each suspect iii. Explain the Nash equilibrium of the game [10 Marks) [5 Marks] [5 Marks)