Question
Think of a game of discoordination in which each of two players chooses to attend 1 of 2 parties. Kristen wants to attend the same
Think of a game of discoordination in which each of two players chooses to attend 1 of 2 parties. Kristen wants to attend the same party as Robert, while Robert wants to avoid Kristen (that is, Robert wants to attend the party Kristen does not attend he cant stand Rupert who Kristen always seems to drag along). Figure 1 shows the payoff matrix of this game. In this matrix, Party A means go to the party at the Cullens house, while Party B means go to the party at the Swans house.
A. This means that (1k) is the probability Kristen chooses Party B. Find the best response strategies of each player. Plot the best response curves of each player in a diagram
a) Let r represent be the probability Robert chooses Party A. This means that (1 r) is the probability Robert chooses Part B. Let k is the probability Kristen chooses Party
b) Find all the Nash equilibrium (pure strategy equilibrium as well as mixed strategy equilibrium) of this game and illustrate the game and equilibria using a diagram.
Figure 3: Discoordination Game Robert Party A Party B Party A 2,0 0,2 Kristen Party B 0,2 2,0Step by Step Solution
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