HOMEWORK ASSIGNMENT #2 [10 POINTS]. DUE IN CLASS ON MONDAY, JAN. 12, 1998.

[NOTE THAT THE FIRST ASSIGNMENT WAS THE E-MAIL ASSIGNMENT.]

1. Graph the 15 outcomes for which there are utility assignments in the matrix below, as follows: Let the X-axis be the utility assignment of Player No. 1 (Potato Farmer) and let the Y-axis be the utility assignment of Player No. 2 (Broccoli Farmer) and graph each outcome in the matrix below as a function of its utility to each player. In your graph, identify each outcome as a point, and label it with its coordinates. Circle all outcomes that are Pareto optimal and put an "X" through all outcomes that are not Pareto optimal.

PLAYER NO. 2:

(BROCCOLI FARMER)

 Player No. 1 (Potato Farmer): PG CONTRIB. & TRADE TRADE & NO PG CONTRIB. INITIATE NO INTER- ACTION PREY/NO DEFENSE PREY & DEFENSE PG CONTRIB. & TRADE. 10,10 7,12 TRADE & NO CONTRIB 12,7 8,8 3, 10 INITIATE NO INTER- ACTION 10,3 5,5 1,7 1,6 PREY/NO DEFENSE 7,1 3,3 [1.5],4 PREY & DEFENSE 6,1 4,[1.5] 2,2