1. Consider the following normal form game. X Y (a) What is the set of rationalizable strategies for this game? Player 1 Player 2 W Q 1,7 2,3 0,4 Z 1,5 3,4 0,6 R= (b) The game has only one Nash equilibrium and it is a mixed strategy Nash equilibrium. Compute and report this equilibrium.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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1. Consider the following normal form game.
X
Y
(a) What is the set of rationalizable strategies for this game?
Player 1
Player 2
W
Q
1,7 1,5
2,3
Z
3,4
0,4 0,6
R=
(b) The game has only one Nash equilibrium and it is a mixed strategy Nash equilibrium.
Compute and report this equilibrium.
Equil. strategy profile:
Transcribed Image Text:1. Consider the following normal form game. X Y (a) What is the set of rationalizable strategies for this game? Player 1 Player 2 W Q 1,7 1,5 2,3 Z 3,4 0,4 0,6 R= (b) The game has only one Nash equilibrium and it is a mixed strategy Nash equilibrium. Compute and report this equilibrium. Equil. strategy profile:
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