Extending Exercise S12, Monica and Nancy need to decide which (if either) of them will commit to an effort level first. To do this, each of them simultaneously writes on a separate slip of paper...

Extending Exercise S12, Monica and Nancy need to decide which (if either) of them will commit to an effort level first. To do this, each of them simultaneously writes on a separate slip of paper whether or not she will commit first. If they both write “yes” or they both write “no,” they choose effort levels simultaneously, as in Exercise S10 in Chapter 5. If Monica writes “yes” and Nancy writes “no,” then Monica commits to her move first, as in Exercise S12. If Monica writes “no” and Nancy writes “yes,” then Nancy commits to her move first.

(a) Use the payoffs to Monica and Nancy in Exercise S12 above as well as in Exercise S10 in Chapter 5 to construct the game table for the first-stage paper-slip decision game.

(b) Find the pure-strategy Nash equilibria of this first-stage game.