Question: need answers and solutions QUESTION 1 (8 POINTS) Sometimes colleagues want to avoid each other during lunch time. Suppose there are two restaurants to go

need answers and solutions

need answers and solutions QUESTION 1 (8 POINTS) Sometimes colleagues want to

QUESTION 1 (8 POINTS) Sometimes colleagues want to avoid each other during lunch time. Suppose there are two restaurants to go to, Restaurant A and Restaurant B, and that Bob and Francisco both have to decide simultaneously where to go. The payoffs are given in the payoff table below. Francisco Restaurant A Restaurant B Suppose that Bob and Francisco play the unique mixed strategy Nash equilibrium of this game. By how much does the probability that Bob goes to Restaurant A increase or decrease when X increases from 1 to 2? Give a short intuitive explanation as to why. Bob

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