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Q3. (25 pts) Game Theory Case 1: Player 2 Stag Hunt Player 1 a. Find the Best Response (also underline in the payoff matrix). Hint:
Q3. (25 pts) Game Theory Case 1: Player 2 Stag Hunt Player 1 a. Find the Best Response (also underline in the payoff matrix). Hint: If the payo are the same means the player is indifferent. So both actions are the best response b. Find the Dominant Strategies for both players. 0. What is the Nash Equilibrium of this game? Case 2: Player 2 Clean Laid-back Player 1 Clean 15,15 0,7 Laid-back 7,0 2,2 (1. Find the Best Response (also underline in the payoff matrix). Hint: If the payoff are the same means the player is indiiferent. So both actions are the best response e. Find the Dominant Strategies for both players. f. What is the Nash Equilibrium of this game? Case 3: Solve the following Sequential Game: FM) 7 g. Find the Equilibrium of this game, i.e. the bundle of actions (Firm 1's action, Firm 2's action). You need underline the payoffs to show the steps
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