Consider the South Korea North Korea arms race in which each country could build nuclear missiles...

 

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Consider the South Korea North Korea arms race in which each country could build nuclear missiles or refrain from building them. The payoffs are shown in table below. South Korea North Korea Build Build (6,6) Refrain (3,8) Refrain (5,1) (12,12) 1. What are the dominant strategies for each country if any? 2. What are the pure strategy NE? 3. Denote n as the probability NK will build nuclear missles and s as the probability SK will build nuclear missles. Find the best response function for each country, b, (n) and bn(s). 4. Find the mixed strategy NE in light of the answer in part 3 Consider the South Korea North Korea arms race in which each country could build nuclear missiles or refrain from building them. The payoffs are shown in table below. South Korea North Korea Build Build (6,6) Refrain (3,8) Refrain (5,1) (12,12) 1. What are the dominant strategies for each country if any? 2. What are the pure strategy NE? 3. Denote n as the probability NK will build nuclear missles and s as the probability SK will build nuclear missles. Find the best response function for each country, b, (n) and bn(s). 4. Find the mixed strategy NE in light of the answer in part 3