(a) Find all the Nash Equilibria, if there is any. (no explanation needed for this part (b) Does player 1 (choosing rows) have any dominant action? If yes, which action(s)? Any dominated action(s)? If yes, which ones? Answer the same questions for player 2, too. (c) If player 1 moves first (and player 2 moves next), what would be the sequentially rational equilibrium (draw the game tree and use backward induction)?
(a) Find all the Nash Equilibria, if there is any. (no explanation needed for this part (b) Does player 1 (choosing rows) have any dominant action? If yes, which action(s)? Any dominated action(s)? If yes, which ones? Answer the same questions for player 2, too. (c) If player 1 moves first (and player 2 moves next), what would be the sequentially rational equilibrium (draw the game tree and use backward induction)?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
(a) Find all the Nash Equilibria, if there is any. (no explanation needed for this part
(b) Does player 1 (choosing rows) have any dominant action? If yes, which action(s)? Any dominated action(s)? If yes, which ones? Answer the same questions for player 2, too.
(c) If player 1 moves first (and player 2 moves next), what would be the sequentially rational equilibrium (draw the game tree and use backward induction)?
What if player 2 moves first (and then player 1 moves next)?
(d) Looking at your findings in (c), would player 1 want to move first or second or is she indifferent (the order doesn’t matter)?
Transcribed Image Text:Y
Z
А
4,1
0,6
1,4
В
1,1
2,3
2,2
C
2,3
1,7
3,6
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