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.

Transcribed Image Text:

(b) I T B II 2 1 2 0 0 r 1 1 3 1