E3

Consider the following normal-form game: L C R U ?; ? 0; 8 4; 4 M 8; 0 2; 2 10; 10 D 2; 4 4; 4 6; 6 Fill in the rst cell in the above matrix such that: a) The Nash equilibrium couple of strategies is (M; R). Explain. b) The Nash equilibrium couple of strategies is (U; L). Explain. c) U and L are non-rationalizable strategies. Explain. d) There exists a Nash equilibrium in dominated strategies. Explain

Q1 Consider the following normal-form game: L C R. U ?, ? 0, 8 4,4 M 8.0 2,2 10, 10 D 2, 4 4,4 6, 6 Fill in the first cell in the above matrix such that: a) The Nash equilibrium couple of strategies is (M, R). Explain. b) The Nash equilibrium couple of strategies is (U, L). Explain. c) U and L are non-rationalizable strategies. Explain. d) There exists a Nash equilibrium in dominated strategies. Explain