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  book-img-for-question

Modern Principles Microeconomics

ISBN: 9781429239998

2nd Edition

Authors: Tyler Cowen, Alex Tabarrok

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