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Economics Nash Equilibrium in Normal Form Games Consider the following game L2 C2 R2 1 2,1 0,0 1,1 C1 0,0 a,a 0,0 R1 1,1 0,0
Economics Nash Equilibrium in Normal Form Games Consider the following game L2 C2 R2 1 2,1 0,0 1,1 C1 0,0 a,a 0,0 R1 1,1 0,0 2,1 for a > 3 a) Describe each players best response function (5 points) b) Find all pure strategy Nash equilibria of the game. Show your work. (5 points) c) Find a mixed strategy Nash equilibrium of the game in which all strategies are played. Show your work. (5 points) d) Show that when a increases, the probability that C, is played in the mixed strategy equi- librium described above decreases while the probability that either Ly or R, are played increases. Provide an intuition for this result. Show your work. (5 points) e) Find three more mixed strategy Nash equilibria of the game. Show your work. (5 points) solve in 30 mins i will give thumb up
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