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QUESTION 4: Continuous Strategies [10 marks] Consider the game in strategic form dened by the following payoff functions: U1(t1,t2) = [10 +w]t1t2 t, U2(t1,t2) =
QUESTION 4: Continuous Strategies [10 marks] Consider the game in strategic form dened by the following payoff functions: U1(t1,t2) = [10 +w]t1t2 t, U2(t1,t2) = [10 +1U]t1t2 tg. Set the parameter to equal to the 6th digit of your QMUL ID number, as shown on your answer sheet. (a) This game has a unique (pure strategy) Nash equilibrium (tLt'g') in which 1;; = it; Find the value of t\"; . (If your answer is a fraction, report it in lowest terms.) (b) To which strategy t2 is the strategy t1 = 4 a best response? (If your answer is a fraction, report it in lowest terms.)
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