Question: 1. Consider the simultaneous-move game below with two players, 1 and 2. Con- sider the following strategy combinations: Strategy Combination 1: Player 1 plays a2;

1. Consider the simultaneous-move game below with two players, 1 and 2. Con- sider the following strategy combinations: Strategy Combination 1: Player 1 plays a2; Player 2 plays by with probability 1/4 and by with probability 3/4. Strategy Combination 2: Player 1 plays a2; Player 2 plays by with probability 3/4 and by with probability 1/4. Show that strategy combination 1 is a Nash equilibrium of the game, while strat- egy combination 2 is not a Nash equilibrium of the game. Player 2 Player 1 1 3,2 1,1 2,0 2,0

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2. It is the results achieved that are important.

3. What is the difference between perception and assessment of a particular everyday situation? Give at least three examples.

7. One or other combination of 16.