Two college students, Al and Bob, very confident about their mid-term exam performance, decided to attend a
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(a) Suppose the final score is entirely based on the make-up test. If Al and Bob give the same answer on the flat tire question, both pass the exam, yielding a payoff of 10 for each of them. If Al and Bob, however, give different answers, both fail the exam, getting payoff zero. Write down the game table of this simultaneous-move game between Al and Bob.
(b) Find all pure-strategy Nash equilibria of this game.
(c) Find two mixed-strategy Nash equilibria of this game with the following requirements: in one of the mixed Nash equilibrium, each player randomizes using two pure strategies, and in the other mixed Nash equilibrium, each player randomizes using three or four pure strategies.
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Related Book For
Business Statistics
ISBN: 9780133899122
3rd Canadian Edition
Authors: Norean D. Sharpe, Richard D. De Veaux, Paul F. Velleman, David Wright
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