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4. Solve for the Nash equilibrium (or equilibria) in each of the following games. (a) The following two-bytwo game is a little harder to solve
4. Solve for the Nash equilibrium (or equilibria) in each of the following games. (a) The following two-bytwo game is a little harder to solve since rm 2's preferred strategy depends of what rm 1 does. But rm 1 has a dominant strategy so this game has one Nash equilibrium. Firm 2 Launch Don't Launch 60, 10 100, 0 Don't 120, 0 Firm 1 What is the Nash equilibrium of this simultaneous-move game? (b) Optional: What would the outcome of this game be if instead rm 1 moved rst and then, after seeing what rm 1 chose, rm 2 chose it strategy? In this case rm 1 doesn't necessarily need to choose a, best response, but rm 2 should choose a best response since it moves second
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