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Jill and John independently and simultaneously choose one of two actions, [ 2 . 5 ] A and B . Choosing B guarantees a payoff
Jill and John independently and simultaneously choose one of two actions,
A and B Choosing B guarantees a payoff of regardless of what
the other agent does. Choosing A brings a less certain outcome: if the
opponent chooses A as well, the payoff is but if the opponent chooses
B then the payoff is zero. Which statement is true?
a Jill chooses A and John chooses A is the only Nash equilibrium.
b Jill chooses A and John chooses B is the only Nash equilibrium.
c Jill chooses B and John chooses A is the only Nash equilibrium.
d Jill chooses B and John chooses B is the only Nash equilibrium.
e Configurations in a and d are both Nash equilibria.
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