Examine the matrix below: Player 2 L R T (8,2) (8,0) Player 1 M (8,4) (4,0)...

 

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Examine the matrix below: Player 2 L R T (8,2) (8,0) Player 1 M (8,4) (4,0) B (12,0) (0,6) (i) One of the strategies can be eliminated by Iterated Elimina- tion of Strictly Dominated Strategies (IESDS), which one? Explain why it can be eliminated and find a strategy that dominates it. [8 Marks] (ii) In the reduced game that results, find the unique mixed strategy Nash equilibrium. [9 Marks] (iii) Graph the best response function of each player showing this Nash equilibrium. [8 Marks] Examine the matrix below: Player 2 L R T (8,2) (8,0) Player 1 M (8,4) (4,0) B (12,0) (0,6) (i) One of the strategies can be eliminated by Iterated Elimina- tion of Strictly Dominated Strategies (IESDS), which one? Explain why it can be eliminated and find a strategy that dominates it. [8 Marks] (ii) In the reduced game that results, find the unique mixed strategy Nash equilibrium. [9 Marks] (iii) Graph the best response function of each player showing this Nash equilibrium. [8 Marks]