Solution of Question 1 Before we start, we make some observations that would simplify our answer to following questions. First, Z is dominated by mixing X and Y with equal probabilities for player 2. Once Z is eliminated, B is dominated by mixing A and C with equal probabilities. Hence, the game can be reduced to the following without losing any Nash equilibria: X Y A 4.3 0.0 C 0.0 3.4 D -1.0 3,1 a: Notice that I's best response to X is A; I's best re- sponse to Y is C and D; 2's best response to A is X; 2's best response to C is Y and finally 2's best response to D is Y. So, (A,X), (C,Y) and (D.Y) are PSNE of this