Question
Use the following payoff matrix for a one-shot game to answer the accompanying questions. Player 2 Strategy X Y Player 1 A (10, 10). (5,-
Use the following payoff matrix for a one-shot game to answer the accompanying questions.
Player 2
Strategy X Y
Player 1 A (10, 10). (5,- 150)
B (-150, 5). (25, 25)
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.
- (5,-150)
- (25,25)
- (-150,5)
- (10,10)
Which of these outcomes would you consider most likely?
- (5,-150)
- (-150,5)
- (10,10)
- (25,25)
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?
- A
- B
What outcome do you think would occur as a result?
- (5,-150)
- (-150,5)
- (10,10)
- (25,25)
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?
- (25,25)
- (-150,5)
- (10,10)
- (5,-150)
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