Question
Three business partners (A, B, C) have to vote if they want to move forward with a plan that would require them to pay three
Three business partners (A, B, C) have to vote if they want to move forward with a plan that would require them to pay three million euros for their company's development. If only one of them votes to go forward no one gets anything. If two of them vote to move forward then all three of them will each earn eight million in return because of the investment made. So if A only decides to move forward, A's payoff is going to be minus three million where B and C have a 0 payoff.
a) Write the game in the strategic form including strategies for players and payoffs and find all n equilibria in pure strategies
b) If A and B use the same mixed strategy, with probability p, what is C's payoff if C decided to move forward?
c) Find the symmetric mixed strategy Nash equilibria of the game
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started