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