(a) (5 points) Find all of the Nash equilibria in this game, being careful to explain the

associated beliefs.

(b) (5 points) Which of the Nash equilibria is the best? Which is the worst? Justify

your answers carefully; notice that we haven't said anything about whether we can

compare payoffs across individuals here.

(c) (5 points) Under what situations might the best equilibrium be played? The worst?

How is this manifested in their beliefs? What kinds of beliefs might lead to these

equilibria? Explain.

7. Consider the game depicted in Figure l Player 2 Player 1 B Figure 1: A 3-by-3 Game (a) (5 points) Find all of the Nash equilibria in this game, being careful to explain the associated beliefs. (b) (5 points) Which of the Nash equilibria is the best? Which is the worst? Justify your answers carefully; notice that we haven't said anything about whether we can compare payoffs across individuals here. (c) (5 points) Under what situations might the best equilibrium be played? The worst? How is this manifested in their beliefs? What kinds of beliefs might lead to these equilibria? Explain. Total for Question 7: 15