Consider the competitive, static, one-time game depicted in the following figure.

a. If larger payoffs are preferred, does either player have a dominant strategy?

b. If B believes that A will move A1, how should B move?

c. If B believes that A will move A2, how should B move?

d. What is the Nash equilibrium strategy profile if this game is played just once?

e. What is the strategy profile for this game if both players adopt a secure strategy?

f. What strategy profile results in the best payoff for both players?

g. Is cooperation a Nash equilibrium if this game is played three times?

Transcribed Image Text:

B1 B B2 A1 (20,20) (5,25) A A2 (25,5) (2,2) Payoffs: (A, B)