Question
2. Consider the following game: Aaron U D Bella L R 51,0 50, 50 1, -20 0, 100 a. Find the Nash equilibrium (NE)
2. Consider the following game: Aaron U D Bella L R 51,0 50, 50 1, -20 0, 100 a. Find the Nash equilibrium (NE) for the above game. Show/explain your work. (8 pts) b. Explain how the strategy combination you found in part (a) satisfies the definition of Nash equilibrium. (7 pts.) c. Is the NE Pareto optimal? Explain why or why not. (5 pts.)
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Microeconomics
Authors: Douglas Bernheim, Michael Whinston
2nd edition
73375853, 978-0073375854
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