Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following payoff matrix for a one-shot game to answer the accompanying questions. Strategy Player 2 X Y Player 1 A 36, 36 -50,

Use the following payoff matrix for a one-shot game to answer the accompanying questions.

Strategy Player 2

X Y

Player 1 A 36, 36 -50, 4

B 4, -50 16, 16

a. Determine the Nash equilibrium outcomes that arise if the players make decisions independently, simultaneously, and without any communication.

Instructions:In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box.

  • (4,-50)
  • unchecked
  • (-50,4)
  • unanswered
  • (16,16)
  • unanswered
  • (36,36)
  • unanswered

Which of these outcomes would you consider most likely?

  • (-50,4)
  • (4,-50)
  • (36,36)
  • (16,16)

b. Suppose player 1 is permitted to "communicate" by uttering one syllable before the players simultaneously and independently make their decisions. What should player 1 utter?

  • B
  • A

What outcome do you think would occur as a result?

  • (-50,4)
  • (16,16)
  • (4,-50)
  • (36,36)

c. Suppose player 2 can choose its strategy before player 1, that player 1 observes player 2's choice before making her decision, and that this move structure is known by both players. What outcome would you expect?

  • (36,36)
  • (16,16)
  • (-50,4)
  • (4,-50)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: Paul Krugman, Robin Wells

4th Edition

1464110379, 9781464110375

More Books

Students also viewed these Economics questions