Question
Consider the two player game in normal form below. Player 2 Player 2 Strategy A Strategy B Player 1 Strategy A (-2, -3) (9, 6)
Consider the two player game in normal form below.
Player 2 Player 2
Strategy A Strategy B
Player 1 Strategy A (-2, -3) (9, 6)
Player 1 Strategy B (1,8) (5,5)
(a) Find all (including mixed strategy) Nash equilibria.
(b) Which (if any) of the equilibria in a) are Pareto efficient?
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Macroeconomics
Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson
3rd Canadian edition
1319120083, 1319120085, 1319190111, 9781319190118, 978-1319120054
