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Consider the following one-off two-player strategic game with VNM preferences: Player 2 D E F A X, 1 3,2 3,1 Player 1 B 2,0 4,

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Consider the following one-off two-player strategic game with VNM preferences: Player 2 D E F A X, 1 3,2 3,1 Player 1 B 2,0 4, Y 0,2 1,2 0,3 2,4 a) Choose values for X, Y and Z, such that each player has a single strictly dominated strategy and the game has no pure strategy Nash equilibria. Briefly explain your choices. [10 marks) b) Allow players to randomise and find the mixed strategy Nash equilibrium in the reduced form game. Show and explain your method. (15 marks) Consider the following one-off two-player strategic game with VNM preferences: Player 2 D E F A X, 1 3,2 3,1 Player 1 B 2,0 4, Y 0,2 1,2 0,3 2,4 a) Choose values for X, Y and Z, such that each player has a single strictly dominated strategy and the game has no pure strategy Nash equilibria. Briefly explain your choices. [10 marks) b) Allow players to randomise and find the mixed strategy Nash equilibrium in the reduced form game. Show and explain your method. (15 marks)

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