Question
SAM and PAT are simultaneously and independently choosing 1 of 3 movies, A, B or C. SAM prefers A to B to C, and PAT
SAM and PAT are simultaneously and independently choosing 1 of 3 movies,
A, B or C. SAM prefers A to B to C, and PAT prefers C to B to A. In
addition, both SAM and PAT would prefer to go to the same movie rather
than different movies.
Are the following statements TRUE / FALSE? Explain your answer.
(i) Strategy combination in which SAM chooses C and PAT chooses A never
can be a Nash equilibrium.
(ii) There exist payoffs for this game such that there are two strict Nash equilibria,
one in which both SAM and PAT choose B, and another in which
SAM chooses A and PAT chooses C.
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