2. Solving for dominant strategies and the Nash equilibrium Suppose Raphael and

Question

2. Solving for dominant strategies and the Nash equilibrium Suppose Raphael and Susan are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Raphael chooses Right and Susan chooses Right, Raphael will receive a payoff of 3 and Susan will receive a payoff of 7 Susan Left Right Left4,6 6,8 Right 7,5 3,7 Raphael The only dominant strategy in this game is for_Susanto choose RightY The outcome reflecting the unique Nash equilibrium in this game is as follows: Raphael chooses and Susan chooses

Explanation / Answer

The only dominant strategy in this game is for Susan to choose Right (No matter what Raphael does, Susan would get a higher payoff when she chooses Right)

The outcome reflecting the unique Nash equilibrium in this game is as follows: Raphael chooses Left and Susan chooses Right (Raphael would maximize his payoff by choosing Left as Susan would play the dominant strategy)

Related Questions

Navigate

• Browse (All)
• Browse 2
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.