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Suppose Sam and Teresa are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows
Suppose Sam and Teresa are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Sam chooses Right and Teresa chooses Right, Sam will receive a payoff of 6 and Teresa will receive a payoff of 6. Teresa Left Right Sam Left 2, 3 4, 4 Right 3, 7 6, 6 The only dominant strategy in this game is for to choose . The outcome reflecting the unique Nash equilibrium in this game is as follows: Sam chooses and Teresa chooses
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