3. Consider the following game between Abigail and Natalie. Abigail faces strategies A & B while Natalie faces strategies C & D. a. Does either player have a dominant strategy? b. What is the pure strategy Nash Equilibria of this game. c. This game has a mixed strategy Nash Equilibrium. Calculate the probabilities in which both Natalie and Abigail will play their respective strategies in equilibrium. Note: I am only looking for the probabilities - not the expected payoffs. Natalie Abigail CD A A: 10 N:16 A: 14 N: 24 BA: 15 N: 20 A: 6 N: 12
3. Consider the following game between Abigail and Natalie. Abigail faces strategies A & B while Natalie faces strategies C & D. a. Does either player have a dominant strategy? b. What is the pure strategy Nash Equilibria of this game. c. This game has a mixed strategy Nash Equilibrium. Calculate the probabilities in which both Natalie and Abigail will play their respective strategies in equilibrium. Note: I am only looking for the probabilities - not the expected payoffs. Natalie Abigail CD A A: 10 N:16 A: 14 N: 24 BA: 15 N: 20 A: 6 N: 12
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:3. Consider the following game between Abigail and
Natalie. Abigail faces strategies A & B while Natalie
faces strategies C & D.
a. Does either player have a dominant strategy?
b. What is the pure strategy Nash Equilibria of this
game.
c. This game has a mixed strategy Nash Equilibrium.
Calculate the probabilities in which both Natalie and
Abigail will play their respective strategies in
equilibrium. Note: I am only looking for the
probabilities - not the expected payoffs.
Natalie
Abigail CD
A A: 10
N:16 A: 14
N: 24
BA: 15
N: 20 A: 6
N: 12
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