Question

2. Write the game below in normal form and find all Nash equilibria. a b 16,-10 4,0 + P1 a b 10,6 2,2 posle Z Nature of P2 a 0,2 p= 14 la

Answer 1

24-16,- 10 2 1106 R-3/4 Nature A_0,2 -86 पप

ad a b 16,10 4,0 PL TY 10,6 2,2 We know, that Pl is going to play - 01 02 C first, his best move will be either x or y if playes I chooses t ex player 2 will choose be is plages I chooses y playce 2 will choose a a This is one of the Nash equilibria in this game indicated by the black line (bold) Another strategy is when Player I chooses & , player 2 will choose b The payout 8, 6 is another Nash equilibria in the game. Total Nash equilibrium is a " (9, a) + (3 , b) giving payouts (10,6) & (8, 6) respectively.

Nash equilibria in this game are (Y,a) and (Q,b) with payouts (10,6) and (8,6).

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