Question: First, we show that action L is strictly dominated by some mixed strategies, for example, ^ 2 = 0; 1 3 ; 2 3 ?:
First, we show that action L is strictly dominated by some mixed strategies, for example, ^ 2 = 0; 1 3 ; 2 3 ?: EU2 (^ 2; T ) = 0 ? 3 + 1 3 ? (2) + 2 3 ? 6 = 10 3 > 3 = U2 (L; T ) ; EU2 (^ 2; B) = 0 ? 1 + 1 3 ? 4 + 2 3 ? 0 = 4 3 > 1 = U2 (L; B) : Thus, L is not played with a positive probability in any MSNE. In the reduced game, using the approach as that in Problem 1 shows that there is one MSNE ( ? 1; ? 2) = 1 3 ; 2 3 ? ; 0; 5 6 ; 1 6 ?? explain player 2's mixed strategy how is 1/6 calcualted for player 2
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