Consider the following interaction between two friends who want to buy a printer for their dorms....

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Consider the following interaction between two friends who want to buy a printer for their dorms. The friends know that the price of the printer is 750 TL. The two friends have both 1000 TL in their pockets. If they end up buying the printer a player's payoff is her valuation of the printer (1000 TL) plus the amount that remains in her pocket (e.g. if she contributed 300 TL for the printer, this amount would be 700 TL). A payoff for a player is zero if they cannot buy the printer. S = {0, 1, 2,..., 750} Example: If Player 1 contributes 30 TL and Player 2 contributes 720 TL and they buy the printer, the payoffs are: Player 1: 1000+(1000-30) Player 2: 1000+(1000-720) 1. Write down the best response correspondences of two players. 2. Write down the Nash equilibria. 3. Write down if there is any dominant strategy. Consider the following interaction between two friends who want to buy a printer for their dorms. The friends know that the price of the printer is 750 TL. The two friends have both 1000 TL in their pockets. If they end up buying the printer a player's payoff is her valuation of the printer (1000 TL) plus the amount that remains in her pocket (e.g. if she contributed 300 TL for the printer, this amount would be 700 TL). A payoff for a player is zero if they cannot buy the printer. S = {0, 1, 2,..., 750} Example: If Player 1 contributes 30 TL and Player 2 contributes 720 TL and they buy the printer, the payoffs are: Player 1: 1000+(1000-30) Player 2: 1000+(1000-720) 1. Write down the best response correspondences of two players. 2. Write down the Nash equilibria. 3. Write down if there is any dominant strategy.

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Best Response Correspondences For Player 1 the best response is to contribute an amount that maximiz... View the full answer