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Consider the following two-person game. Player 1 choices are T and B and Player 2 chooses L and R. Player 2L R Player 1T(1, 3)(0,
Consider the following two-person game. Player 1 choices are T and B and Player 2 chooses L and R.
Player 2L R
Player 1T(1, 3)(0, 0)
B(0, 0)(2, 1)
Letpbe the probability player 1 chooses T, andqbe the probability player 2 chooses L.
(a) (3pts) Construct player 1's best response function.
(b) (3pts) Construct player 2's best response function.
(c) (4pts)Plot the best response functions and find all Nash equilibria (mixed and pure).
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