(d) Now assume that everybody in Catalonia chooses a preferred language and uses it all the time when meeting other peop

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D Now Assume That Everybody In Catalonia Chooses A Preferred Language And Uses It All The Time When Meeting Other Peop 1 (90.82 KiB) Viewed 8 times

(d) Now assume that everybody in Catalonia chooses a preferred language and uses it all the time when meeting other people. Assume that p proportion of the population chooses and uses Catalan. i. Write a mathematical expression and represent graphically (in the graph below) a person's expected payoff • when s/he chooses Catalan, and • when s/he chooses Spanish. Note that these expected payoffs might depend on p. Eu- expected payoff 10 9 8 2 1 0 0.1 0.2 0.3 0.4 0.5 Р 0.6 0.7 0.8 0.9 2 points ii. Is there an equilibrium in Catalonia in which everybody prefers Catalan? If yes, is it stable? 2 points iii. Is there an equilibrium in Catalonia in which everybody prefers Spanish? If yes, is it stable? 2 points