Question: A warrior ( W ) and a mage ( M ) are exploring a dungeon looking for monsters. Their exploration is framed as a two
A warrior W and a mage M are exploring a dungeon looking for monsters. Their exploration is framed as a twostage game. In the first stage, they prepare to fight a monster in the next room, and both of them can do either of two actions: cast a spell C or draw the sword D; actually, strong W does not like to C and lazy M prefers not to choose D Still, they choose their actions simultaneously without talking or communicating to each other in advance. Both players are fully aware of each others partial payoffs for this stage, that are defined as follows: they get utility if they choose different actions, while their utility is if the actions are the same because this might make them less prepared against certain enemies. Moreover, must be subtracted from the utility of a player who chooses the lessfavourite action. After that stage, a second stage is played where the two adventurers, while grabbing their loot, are surprised by a troll. Now, they can either run cowardly R or attack the troll A Also this action is decided independently of each other and at the same time. If they both attack, they successfully slay the troll payoff for both A player attacking alone gets killed by the troll payoff while the other is unharmed and can easily take the treasure before running away payoff If they both run, they manage to escape but they must leave the treasure behind payoff Find all the Nash equilibria of the twostage game.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
