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4. Solving for dominant strategies and the Nash equilibrium Suppose Hakeem and Alexandra are playing a game that requires both to simultaneously choose an action:
4. Solving for dominant strategies and the Nash equilibrium Suppose Hakeem and Alexandra are playing a game that requires both to simultaneously choose an action: Up or Down. The payoff matrix that follows shows the earnings of each person as a function of both of their choices. For example, the upper-right cell shows that if Hakeem chooses Up and Alexandra chooses Down, Hakeem will receive a payoff of 6 and Alexandra will receive a payoff of 3. Alexandra Up Down Up 6, 6 6, 3 Hakeem Down 4, 3 5, 5 In this game, the only dominant strategy is for V to choose The outcome reflecting the unique Nash equilibrium in this game is as follows: Hakeem chooses and Alexandra chooses
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