Assignment:
A local government wants to hire a construction rm to perform a public works project. The government gets payo 1 from the completed project, but if the government chooses
not to hire the construction rm for this project, it can use its tax revenue to implement other projects that yield payo 0 < c="">< 1.="" if="" the="" government="" hires="" the="" construction="" rm,="" the="" rm="" completes="" the="" project="" but="" then="" chooses="" the="" price="" 0=""><= p=""><= 1="" that="" it="" bills="" to="" the="" government,="" which="" the="" government="" must="" pay.="">
(a) Describe this interaction as a game in strategic form.
(b) Find all the Nash equilibria in pure strategies of this game.
(c) Find a mixed strategy Nash equilibrium of this game.