Question

Alice wants to support her son Bob if he looks for work but not otherwise. Bob wants to try to find a job only if Alice does not support his life of indolence. Their payoff matrix is


Alice and Bob choose their actions simultaneously. Describe all (if any) pure strategies Nash equilibrium in the game with the above payoff matrix
There is no pure strategy Nash equilibrium of the following game. For any strategy profile (out of four) chosen by one player, the other player has incentive to deviate. So the game has no pure strategy Nash equilibrium, and if Alice and Bob are allowed to randomize their behavior, what will be the equilibrium strategies andpayoffs? 


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  • CreatedAugust 05, 2013
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