Game theory is used in economics, social science and computer science to understand and predict the...

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Game theory is used in economics, social science and computer science to understand and predict the behaviour of people and intelligent entities. In project management and business scenarios, it can be used to predict the behaviour of competing entities, which is valuable for business. a) Explain what you understand by Pure Strategy Nash equilibrium (or simple Nash Equilibrium) in the context of game theory. (4 marks) b) Explain what you understand by a dominant strategy in a two-player game. (2 marks) c) Consider the following normal game where Blue and Red can both play 'C' or 'D'. The payoffs in each quarter are denoted in red and blue for the respective players. What are the Nash equilibrium states in this game? Is there a dominant strategy for either player? (6 marks) BLUE C D (3,3) (1, 4) RED (4, 1) (2,2) Game theory is used in economics, social science and computer science to understand and predict the behaviour of people and intelligent entities. In project management and business scenarios, it can be used to predict the behaviour of competing entities, which is valuable for business. a) Explain what you understand by Pure Strategy Nash equilibrium (or simple Nash Equilibrium) in the context of game theory. (4 marks) b) Explain what you understand by a dominant strategy in a two-player game. (2 marks) c) Consider the following normal game where Blue and Red can both play 'C' or 'D'. The payoffs in each quarter are denoted in red and blue for the respective players. What are the Nash equilibrium states in this game? Is there a dominant strategy for either player? (6 marks) BLUE C D (3,3) (1, 4) RED (4, 1) (2,2)