Question
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)
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