(a) Find the set of rationalizable strategies (b) Find the set of Nash Equilibria in pure strategies

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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A. Consider the following game in normal form. Player 1 is the "row" player with
strategies a,b,c,d and Player 2 is the "column" player with strategies w,x,y,z. The
game is presented in the following matrix:
a
b
C
d
W
X y
3,3 2,1 0,2 2,1
Z
1,1 1,2 1,0 1,4
0,0 1,0 3,2 1,1
0,0 0,5 0,2 3,1
(a) Find the set of rationalizable strategies
(b) Find the set of Nash Equilibria in pure strategies
Transcribed Image Text:A. Consider the following game in normal form. Player 1 is the "row" player with strategies a,b,c,d and Player 2 is the "column" player with strategies w,x,y,z. The game is presented in the following matrix: a b C d W X y 3,3 2,1 0,2 2,1 Z 1,1 1,2 1,0 1,4 0,0 1,0 3,2 1,1 0,0 0,5 0,2 3,1 (a) Find the set of rationalizable strategies (b) Find the set of Nash Equilibria in pure strategies
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