1.5. In the following three games, is each a coordination game or a prisoner's dilemma? The best...
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1.5. In the following three games, is each a coordination game or a prisoner's dilemma?
The best way to check is to see if there is exactly one Nash equilibrium; another way is to see if there is a dominant strategy for each player.
To keep it a little challenging, we won't give the actions obvious labels that might give away the answer. Higher numbers are always better:
a.
b.
c.
Player B Left Player A
Up Down
(3, 3)
(5, 5)
Right
(5, 5)
(1, 1)
Player B Left Player A
Up Down Up Down
(1 00, 1 00)
(50, 600)
Left
(8, 6)
(3, 0)
Right
(600, 50)
(500, 500)
Player B Right
(7, 5)
(9, 9)
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Related Book For
Modern Principles Microeconomics
ISBN: 9781429239998
2nd Edition
Authors: Tyler Cowen, Alex Tabarrok
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