Game theory problem


Assignment:

Rose and Cathy decide to play a matrix game. Each has two options, conveniently  called W and L. If both pick W, Cathy pays Rose $4; if both pick L, Cathy pays Rose $2; if  Rose chooses L and Cathy chooses W, Cathy pays $1 to Rose; and finally, if Rose chooses W  and Cathy chooses L, Rose pays Cathy $1. The payoff matrix for Rose can be represented as

$4 - $1
$1 $2,

where the first row and column represents choosing W and the second row and column  represents choosing L. Also, Rose is the row player and Cathy is the column player. How should Rose and Cathy play this game?

Provide complete and step by step solution for the question and show calculations and use formulas.

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Mathematics: Game theory problem
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