Question

Question 15 (1.5 points) The following matrix describes a simultaneous move game between Player 1 and Player 2. Player 2 - Player 1 9,1 15,5 10, 20 14, 25 Select the Nash equilibriums from the following list. Player 1 plays M, Player 2 plays L Player 1 plays M, Player 2 plays R Player 1 plays B, Player 2 plays L Player 1 plays B, Player 2 plays R

Answer 1

The solution of this problem would be.....

- Nash equilibrium is a concept of deter- mining optimal solition in a non-cooperative game in which each player lacks an incentive to change his sher initial strategy even after knowing the opponents choice of Strategy. Chiuder Nash equilibrium, a player does not gain anything from deviation strategy assuming other players also keep their strategies unchanged. osen strarating from their initially che

Player I plays in player 2 play L In this given plays a player im player 2 will try to maximise bir pay off by playing R (with pay off) ihan L (with payoff = 1) situation 1 Thus, not Nash equilibrium. Hence, for the above reason , situa. tion 2 Player I plays an is Player 2 play RJ Nash equilibrium. This is because, for player 2 playing R (given), player 1's best strategy is in (with highed pay off = 15). which is what he is actually playing Thue, situation 2 is a Nash equilibrium. When player t plays B player 2 plays L. This is not a Nash equitiberiun. Giren, player 1 plays B, player 2's best Strategy is R (payoff = 25) than playing payoff = 20) - But he is playing L- Elence, not a wash equilibrium

Again, when player 2 is known playing Ř (given), player is best strategy in (with payoff = 15), but he is playing B instead of m. Thus, not a Nash equilibrinem in situation 4