ECON 2350 Lecture Notes - Lecture 15: Nash Equilibrium

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amaranthhamster412

27 Feb 2017

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To prove this note that if a chooses top, then the best thing for b to do is to choose left, since the payoff to b from choosing left is 1 and from choosing right is 0. And if b chooses left, then the best thing for a to do is to choose top since then a will get a payoff of 2 rather than of 0. So we have a nash equilibrium: each person is making the optimal choice, given the. The nash equilibrium is a generalization of the cournot equilibrium described in the last other person"s choice. chapter. There the choices were output levels, and each firm chose its output level taking the other firm"s choice as being fixed. Each firm was supposed to do the best for itself, assuming that the other firm continued to produce the output level it had chosen that is, it continued to play the strategy it had chosen.

Related Questions

Suppose that two players are playing the following game. Player A can choose either Top or Bottom, and Player B can choose either Left or Right. The payoffs are given in the following table:
Player A: LEFT RIGHT
TOP 2 5 | 1 4
BOTTOM 0 1 | 3 8

where the number on the left is the payoff to Player A, and the number on the right is the payoff to Player B.

A) (1 point) Does player A have a dominant strategy, and if so what is it?

B) (1 point) Does player B have a dominant strategy and if so what is it?

C) (4 points) For each of the following say True if the strategy combination is a Nash equilibrium, and False if it is not a Nash equilibrium:

i) Player A plays Top and Player B plays Left

ii) Player A plays Bottom and Player B plays Left

iii) Player A plays Top and Player B plays Right

iv) Player A plays Bottom and Player B plays Right

D) (2 points) If each player plays her maximin strategy what will be the outcome of the game? (Give your answer in terms of the strategies each player chooses

bluelouse209

Suppose that two players are playing the following game. Player A can choose either Top or Bottom, and Player B can choose either Left or Right. The payoffs are given in the following table:

Where the number on the left is the payoff to Player A, and the number on the right is the payoff to Player B.

A) (1 point) Does player A have a dominant strategy, and if so what is it?

B) (1 point) Does player B have a dominant strategy and if so what is it?

C) (4 points) For each of the following say true if the strategy combination is a Nash equilibrium, and false if it is not a Nash equilibrium:

i) Player A plays Top and Player B plays Left

ii) Player A plays Bottom and Player B plays Left

iii) Player A plays Top and Player B plays Right

iv) Player A plays Bottom and Player B plays Right

D) (2 points) If each player plays her maximin strategy what will be the outcome of the game? (Give your answer in terms of the strategies each player chooses)

coffeemarten373

1. (10 total points)

Suppose that two players are playing the following game. Player A can choose either Top or Bottom, and Player B can choose either Left or Right. The payoffs are given in the following table:

graycod593

ECON 2350 Lecture Notes - Lecture 15: Nash Equilibrium

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