The following matrix gives the payoff for Player 1 and Player 2 with R and L strategies.
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Question:
The following matrix gives the payoff for Player 1 and Player 2 with R and L strategies. Assume that they determine their strategies simultaneously and independently.
| Player 2 | |||
| R | L | ||
| R | (5, 4) | (-1, -1) | |
| Player 1 | L | (-1, -1) | (2, 2) |
(a) Does Player 1 have a dominant strategy? Why or why not? What is its dominant strategy, if existing?
(b) Does Player 2 have a dominant strategy? Why or why not? What is its dominant strategy, if existing?
(c) Identify the Nash equilibrium(s) in this game? State explicitly the respective strategy of Player 1 and Player 2 in each Nash Equilibrium.
Expert Answer:
a To determine if Player 1 has a dominant strategy we compare the payoffs for each strategy regardle... View the full answer
Related Book For 
Macroeconomics Principles and Applications
ISBN: 978-1133265238
5th edition
Authors: Robert e. hall, marc Lieberman
Posted Date:
