Question: Two children, Alex and Mariana, simultaneously choose between three kinds of treats for a birthday party: chocolates, cookies and brownies. None of them knows

Two children, Alex and Mariana, simultaneously choose between three kinds of treats

Two children, Alex and Mariana, simultaneously choose between three kinds of treats for a birthday party: chocolates, cookies and brownies. None of them knows what the other child would choose, and the utility each child obtains depends on the combination of treats they have available at the party. The following payoff matrix shows the utility levels in each of the nine situations. Does Alex have a dominant strategy? What about Mariana? What is/ are the Nash equilibrium/ equilibria (NE) of this game? TABLE 23 Mariana Chocolates Cookies Brownies Chocolates 20, 30 50, 40 36, 35 Alex Cookies 50, 40 35, 25 40, 32 Brownies 36, 35 40, 32 30, 20

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Answer Alexs dominent strategy If Alex chooses chocolate Alex payoff will be 20 if Mariana chooses chocolates Alex payoff will be 50 if Mariana choose... View full answer

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