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Q2 (18 points) (Game Theory) Construct a simultaneous-move game with 2 players, Row and Column. Row has 3 strategies, one of which is strictly dominated.

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Q2 (18 points) (Game Theory) Construct a simultaneous-move game with 2 players, Row and Column. Row has 3 strategies, one of which is strictly dominated. Column has 2 strategies, neither of which is strictly (or weakly) dominated. The game should have 2 pure strategy Nash equilibria. Note: your game cannot be one of the games we did in class (lecture or problem sets). a) Illustrate your game in normal (matrix) form, and point out the 2 pure Nash equilibria. Explain briefly why those are equilibria. b) Solve for the mixed-strategy NE equilibrium of your game. c) Now suppose the game is played sequentially. Row moves first, and Column second. Write down all strategies for both players. Find the subgame-perfect equilibrium. + Drag and drop your files or click to browse

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