Question 1:

Exercise 1. (20 points) (1) Consider the game I' = (I, {3,}, {u,}) where I = {1,2,3}, 31 = {(1, b}, 82 = {L, R}, and 53 = {A, B}. The payoffs are given by the following matrices (in each cell, the rst entry is 1's utility, the second entry is 2's utility and the third entry is 3's utility): L R L R a- (1-- b 3,1,2 1,2,0 (1 3,0,2 1,1,4 A B Find the pure Nash equilibria of this game (Hint: Player 1 chooses the row, player 2 chooses the column, and player 3 chooses the matrix)