Question
(b) Two players, 1 and 2, must each choose to move left (L) or right (R). If they both choose L they both get a
(b) Two players, 1 and 2, must each choose to move left (L) or right (R). If they both
choose L they both get a payoff of 100. If they both choose R they both get a payoff of
60. If 1 chooses L and 2 chooses R, payoffs for 1 and 2 are respectively 0 and 60. If 1
chooses R and 2 chooses L, payoffs for 1 and 2 are respectively 60 and 0.
(i) Describe all pure-strategy Nash equilibria for this game.
(ii) Suppose that each of the two players believes that with probability 1/2 her
opponent is a rational player whose strategies are chosen as best responses to her
opponent's choices, but with probability 1/2 her opponent is a machine that selects
L or R by tossing a coin, L and R being selected with equal probabilities. What are
the pure-strategy equilibria in this scenario? Explain.
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