8.1 Consider the following game: Player 2 D E Player 1 A 7, 6 5, 8 B

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8.1 Consider the following game:

Player 2 D E Player 1 A 7, 6 5, 8 B 5, 8 7, 6 F

0, 0 1, 1 C 0, 0 1, 1 4, 4

a. Find the pure-strategy Nash equilibria (if any).

b. Find the mixed-strategy Nash equilibrium in which each player randomizes over just the first two actions.

c. Compute players’ expected payoffs in the equilibria found in parts

(a) and (b).

d. Draw the extensive form for this game.

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Microeconomic Theory Basic Principles And Extension

ISBN: 9781111525538

11th Edition

Authors: Walter Nicholson, Christopher M. Snyder

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