Question
Consider a simultaneous game between the USA and Russia, regarding the war in Afghanistan. Each player has two possible strategies, attack or withdraw. The USA
Consider a simultaneous game between the USA and Russia, regarding the war in Afghanistan. Each player has two possible strategies, attack or withdraw. The USA will be player 1 (the row player). The payoffs are as follows:
US attacks, Russia withdraws: 7, 0
US attacks, Russia attacks: -1, -4
US withdraws, Russia withdraws: 1 , 0
US withdraws, Russia attacks: 0 , 8
a)Write down the matrix of the game. Calculate a Nash equilibrium?
b) Critically discuss the following statement: "Rationality is never seen in real life, so we should not be assuming it in game theory."
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