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7. Solving for dominant strategies and the Nash equilibrium Suppose Charles and Dina are playing a game in which both must simultaneously choose the action
7. Solving for dominant strategies and the Nash equilibrium Suppose Charles and Dina are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix/table that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower right cell shows that if Charles chooses Right and Dina chooses Right, Charles will receive a payoff of 5 and Dina will receive a payoff of 5. Dina Left Right Left 6, 6 6, 3 Charles Right 4, 3 5,5 The only dominant strategy in this game is for to choose The outcome reflecting the unique Nash equilibrium in this game is as follows: Charles chooses and Dina chooses
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