Question: Consider the Quality game in Figure 3.2(b). Figure 3.2(b) (a) Use the goalpost method twice, to draw the upper envelope of best-response payoffs to player
Consider the Quality game in Figure 3.2(b).
Figure 3.2(b)
(a) Use the "goalpost" method twice, to draw the upper envelope of best-response payoffs to player I against the mixed strategy of player II, and vice versa.
(b) Explain which of these diagrams shows that a pure strategy dominates another pure strategy.
(c) Explain how that diagram shows that if a pure strategy \(s\) dominates a strategy \(t\), then \(t\) is never a best response, even against a mixed strategy of the other player.
(b) I T B II 2 1 2 0 0 r 1 1 3 1
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