Question: Consider a game in which, simultaneously, player 1 selects any real number x and player 2 selects any real number y . The payoffs are

Consider a game in which, simultaneously, player 1 selects any real numberxand player 2 selects any real numbery. The payoffs are given by:

u1(x,y)=2xx2+2xy

u2(x,y)=10y2xyy.

(a)Calculate and graph each player's best-response function as a function of the opposing player's pure strategy.

(b)Find and report the Nash equilibria of the game.

(c)Determine the rationalizable strategy profiles for this game.

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