Chapter $18$ Homework

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Attempts $$ Keep the Highest $/2$

$7.$ Solving for dominant strategies and the Nash equilibrium

Suppose Rashard and Alyssa are playing a game that requires both to simultaneously choose an action: Up or Down. The payoff matrix that follows shows the earnings of each person as a function of both of their choices. For example, the upper$-$right cell shows that if Rashard chooses Up and Alyssa chooses Down, Rashard will receive a payoff of $6$ and Alyssa will receive a payoff of $3.$

$\backslash$table$[[,$Alyssa$],[,$Up$,$Down$],[$Rashard$,$Up$,6,6,6,3],[$Down$,4,3,5,5]]$

In this game, the only dominant strategy is for $$ to choose $$

The outcome reflecting the unique Nash equilibrium in this game is as follows: Rashard chooses $$ and Alyssa chooses $$

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