Question

Consider the following game where a robber is attempting to steal a diamond, and a police officer is on duty to guard the diamond. The officer is bored however and considers going to get a doughnut. The normal form of the game is represented below where the officer is the column player and the robber is the row player.

	Guard	Doughnut
Steal	-5,5	10,-4
Not	0,-1	-1,2

A) Find any Nash equilibria of this game.

B) Suppose the officer notices the "hot doughnuts" sign is on, so the payoff of eating a doughnut when the robber does not steal increases from 2 to 4 (the rest of the payoffs are unchanged). How would this change the officer's decision, if at all? What is the new equilibrium?