Consider the following payoff matrix: Diane 1, 1 1, 2 1, 2 2,0 N 3. I0, 2 1,0 Camilla E 1, 2 3, 3 1, 1 1, 3 0, 3 1, 2 2, 2 S 3, 1 a) Find the Nash Equilibria (NE). b) Eliminate iteratively the strictly dominated strategies. Briefly discuss for each player which actions survive the elimination process.
Consider the following payoff matrix: Diane 1, 1 1, 2 1, 2 2,0 N 3. I0, 2 1,0 Camilla E 1, 2 3, 3 1, 1 1, 3 0, 3 1, 2 2, 2 S 3, 1 a) Find the Nash Equilibria (NE). b) Eliminate iteratively the strictly dominated strategies. Briefly discuss for each player which actions survive the elimination process.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Consider the following payoff matrix:
Diane
E
W
1, 1
1, 2
1, 2
2, 0
3
0. 2
3. 3
1, 3
1, 2
1, 0
1. 1
0, 3
2, 2
Camilla.
E
2, 1
3, 1
W
a) Find the Nash Equilibria (NE).
b) Eliminate iteratively the strictly dominated strategies. Briefly discuss for
each player which actions survive the elimination process.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9685d56b-1ce7-4c26-b63e-25d889a6339f%2F069fdbec-9c08-44a6-9bcc-35a7507f5dde%2Fax5iuaf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following payoff matrix:
Diane
E
W
1, 1
1, 2
1, 2
2, 0
3
0. 2
3. 3
1, 3
1, 2
1, 0
1. 1
0, 3
2, 2
Camilla.
E
2, 1
3, 1
W
a) Find the Nash Equilibria (NE).
b) Eliminate iteratively the strictly dominated strategies. Briefly discuss for
each player which actions survive the elimination process.
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