Question: Hi, here is the homework question I need help with. I do not understand how to draw the matrix and determine the Nash equilibria. Fred
Hi, here is the homework question I need help with. I do not understand how to draw the matrix and determine the Nash equilibria.
"Fred and Barney are negotiating with each other to divide $4. Simultaneously, each proposes an integer between 0 and 4 (inclusive) to represent the amount that Fred gets. If they propose the same number, Fred receives the proposed amount and Barney receives the rest. If they propose different numbers, neither gets anything. Does either player have a dominant, weakly dominated, or dominated strategy? Identify all the Nash equilibria. Is there an equilibrium in which Fred and Barney don't reach an agreement (that is, in which they make different proposals)? If such an equilibrium exists, is it reasonable? Why or why not?"
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