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Consider a two - player game where player A chooses Up , or Down and player B chooses Left, Center, or Right. Their
Consider a twoplayer game where player A chooses Up or "Down" and player B chooses
"Left," "Center," or "Right". Their payoffs are as follows: When player A chooses Up and
player B chooses "Left" player A gets $ while player B gets $ When player A chooses
Up and player B chooses "Center" they get $ and $ correspondingly, while when player
A chooses Up and player B chooses "Right" player A loses $ while player B gets $
Moreover, when player A chooses "Down" and player B chooses "Left" they get $ and $
while when player A chooses "Down" and player B chooses "Center" they both get $ Finally,
when player A chooses "Down" and player B chooses "Right" player A loses $ and player B
gets $ Assume that the players decide simultaneously or in general, when one makes his
decision doesn't know what the other player has chosen
a Draw the normal form game.
b Is there any dominant strategy for any of the players? Justify your answer.
c Is there any Nash equilibrium in pure strategies? Justify your answer fully and discuss
your result.
A strategy is DOMINATED if there exists another strategy for the player that yields higher
payoff, regardless of which strategy the other player chooses. Dominated strategies are assig
ned a probability of in any Nash Equilibrium in mixed strategies. Given this observation
answer the following parts of this problem:
d Find the best response functions and the mixed strategies Nash Equilibrium if each
player randomizes over his actions.
e Show graphically the best responses and the Nash Equilibria in pure and in mixed
strategies
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