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Consider the following two - player game. The payoff of the row player ( 1 ) is the first of the two numbers, while the

Consider the following two-player game. The payoff of the row player (1) is the first of

the two numbers, while the payoff of the column player (2) is the second.

(a) [10 marks] Are any of the three actions of player 2 strictly dominated? [Hint: you

have to show the strategy that strictly dominates it] Are any of the three actions of

player 1 strictly dominated?

(b) [10 marks] After eliminating the strictly dominated actions of the two players

identified in (a), do any of the remaining actions of player 1 , or of player 2 , become

strictly dominated?

(c) [5 marks] Explain - very briefly - why in a Nash equilibrium a player never plays a

strategy that is strictly dominated.

(d) [10 marks] After eliminating all the strictly dominated strategies of the two players

identified in (a) and (b), find all pure strategy Nash equilibria of the game.

(e) [15 marks] Find a mixed strategy Nash equilibrium of the game.

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