.4) Think of a game of discoordination in which each of two players chooses to attend 1...
Question:
.4) Think of a game of discoordination in which each of two players chooses to attend 1 of 2 parties. Kristen wants to attend the same party as Robert, while Robert wants to avoid Kristen (that is, Robert wants to attend the party Kristen does not attend he can't stand Rupert who Kristen always seems to drag along). Figure 1 shows the payoff matrix of this game. In this matrix, Party A means "go to the party at the Cullen's house," while Party B means "go to the party at the Swan's house."
Figure 1 - The first digit before the comma in each corresponding column represents Robert's payoff, the second digit represents Kristen'sPayoff. I hope this makes sense.
Robert
Party A Party B
Party A 2, 0 0, 2
Kristen
Party B 0, 2 2, 0
a) Let r represent be the probability Robert chooses Party A. This means that (1 r) is the probability Robert chooses Part B. Let k is the probability Kristen chooses Party Tutorials: A. This means that (1k) is the probability Kristen chooses Party B. Find the best response strategies of each player. Plot the best response curves of each player in a diagram.
b) Find all the Nash equilibrium (pure strategy equilibrium as well as mixed strategy equilibrium) of this game and illustrate the game and equilibria using a diagram.