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Just trying to see if I have the right answer! I\'m not sure wich one is the mos

ID: 1114562 • Letter: J

Question

Just trying to see if I have the right answer! I'm not sure wich one is the most correct in this senario.

Question 10 1.25 pts Scenario: To win candy bars, Tom and Sam are playing a game in which they are blindfolded and are asked to raise either their right hand or their left hand when a bell rings. The matrix below shows their payoffs in different situations. Payoff here denotes the number of candy bars they get. The first number listed in each cell is the payoff to the row player and the second number listed is the payoff to the column player. Sam Left ash 3, 2, Left Tom 0, 2 1, Right Refer to the scenario above. Which of the following strategy combinations denote a Nash equilibrium? (Left, Left) O (Right, Left) (Left, Right) O (Right, Right)

Explanation / Answer

The correct choice is left left.

Nash equilibrium justifies the best possible strategies by each player given the strategy chosen by the rival. In this case both the players have dominant strategy of selecting left. Tom experience that if Sam chooses left, his payoff is more at 3 when he chooses left and 0 when he chooses right. Again his pay off is 2 when he chooses left and 1 when he chooses right in case Sam chooses right. The same is true for Sam. Both will choose left as their dominant strategy