Question: Solve all question please 4) Consider the lobbying game presented in Chapter 11 of the textbook (p. 133). The payoff matrix is given below: Y

Solve all question please

Solve all question please 4) Consider the lobbying game presented in Chapter

4) Consider the lobbying game presented in Chapter 11 of the textbook (p. 133). The payoff matrix is given below: Y N X L (-$5, -$5) ($25, $0) N ($0, $15) ($10, $10) To find the best response in mixed strategies, let p be the probability that Firm X lobbies the government and let q be the probability that Firm Y lobbies the government. a. Derive the best response function for Firm X given Firm Y's mixed strategy q. b. Derive the best response function for Firm Y given Firm X's mixed strategy p. c. Draw the two best response functions on a graph with p on the horizontal axis and q on the vertical axis. d. Find all the Nash Equilibria in both pure and mixed strategies

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