5. Consider a simultaneous game in which player A chooses one of two actions (Up orDown), and B chooses one of two actions (Left or Right). The game has the followingpayoff matrix, where the first payoff in each entry is for A and the second for B.(8 points)BRightLeft3,3 5,1Down 2,2 4,4a. Find the Nash equilibrium or equilibria.b. Which player, if any, has a dominant strategy?A Up

a) In order to find the Nash equilibrium we will see the best response of each of the player to the…

Answered: a. Find the Nash equilibrium or…

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a. Find the Nash equilibrium or equilibria. b. Which player, if any, has a dominant strategy?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5. Consider a simultaneous game in which player A chooses one of two actions (Up or
Down), and B chooses one of two actions (Left or Right). The game has the following
payoff matrix, where the first payoff in each entry is for A and the second for B.(8 points)
B
Right
Left
3,3 5,1
Down 2,2 4,4
a. Find the Nash equilibrium or equilibria.
b. Which player, if any, has a dominant strategy?
A Up

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