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2. The following is a stylized description of (American) football; if you actually know something about football, forgive me. There are two players, offense and
2. The following is a stylized description of (American) football; if you actually know something about football, forgive me. There are two players, "offense" and "defense." Offense has two strategies, "run" (R) and "pass" (P). The defense likewise has two strategies, which I will term NR and NP. NP is the best response to P while NR is the best response to R. Players must choose their actions simultaneously. The payoff matrix is: NP NR P -6, 6 10, -10 R 6, -6 -2, 2 These numbers are made up, but think of them as representing expected num- ber of yards gained by the offense (or lost by the defense). (a) Find all the Nash equilibria. Are there any pure strategy NE? Comment. (b) Suppose the offense hires a new quarterback and their passing game im- proves. The payoff matrix changes to: NP NR P -4, 4 12, -12 R 6, -6 -2, 2 Find all Nash equilibria. Compare to the answer in (a). Describe the change in equilibria in words. What is going on here
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