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Consider the following game. This is tricker because neither player has a dom- inant strategy. But if you mark each players best responses, you can

Consider the following game. This is tricker because neither player has a dom- inant strategy. But if you mark each players best responses, you can solve it. Player 1 Player 2 In Out In -2,-2 2, 0 Out 0, 2 0, 0 (a) What is the Nash equilibrium of this game, or if there are more than one, what are the Nash equilibria of this game? (b) Suppose Player 1 could move before Player 2 and Player 2 could observe Player 1's move. What do you think would happen? You might ask yourself which of the four outcomes does Player 1 prefer and can they obtain that by moving first? We will discuss sequential move games in class next week. For now I just want you to think about this problem without knowing how I will recommend you solve it

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