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3. The table below shows expected payoffs (in millions) for the Yankees and the Orioles, which depend on whether they bid on free agents or
3. The table below shows expected payoffs (in millions) for the Yankees and the Orioles, which depend on whether they bid on free agents or refrain from bidding on them. a. Using game theory for a one-shot, simultaneous decision game, find all the Nash equilibria. (2 pts) b. How would your answer in a. above change (if at all) if the owners of the two teams sat down and discussed the situation before making their decisions? 3. The table below shows expected payoffs (in millions) for the Yankees and the Orioles, which depend on whether they bid on free agents or refrain from bidding on them. a. Using game theory for a one-shot, simultaneous decision game, find all the Nash equilibria. (2 pts) b. How would your answer in a. above change (if at all) if the owners of the two teams sat down and discussed the situation before making their decisions
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