Question
If Player A plays UP and Player B plays LEFT then Player A gets $1 and Player B gets $2. If Player A plays UP
If Player A plays UP and Player B plays LEFT then Player A gets $1 and Player B gets $2.
If Player A plays UP and Player B plays RIGHT then Player A gets $4 and Player B gets $3.
If Player A plays DOWN and Player B plays LEFT then Player A gets $2 and Player B gets $4.
If Player A plays DOWN and Player B plays RIGHT then Player A gets $3 and Player B gets $1.
Let p = probability that Player A plays UP
Let (1 - p) = probability that Player A plays DOWN
What is the equation for the expected utility if Player B plays Right?
EU = 3 - p
EU = 4 - 2p
EU = 2p + 1
EU = 4 - 3p
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Principles Of Macroeconomics
Authors: Lee Coppock, Dirk Mateer
2nd Edition
0393614093, 9780393614091
