Consider a two-player game where each player can choose either a high effort level (H) or a low effort level (L). The payoff matrix for the game is as follows:
| H | L | |
| H | (5,5) | (7,2) |
| L | (2,7) | (6,6) |
The game is played simultaneously. Based on this information, which of the following is the Nash equilibrium for this game?
1
Both players choose a high effort level (H,H).
2
Both players choose a low effort level (L,L).
3
Player 1 chooses a high effort level, and Player 2 chooses a low effort level (H,L).
4
Player 1 chooses a low effort level, Player 2 also chooses a low effort level (L,L).