Consider the following two-player game: 2 L M U 3,3 2,3 3,1 1 M 2,1 D 0,3 R 0,2 3,3 3,0-5,-5

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Chapter1: Making Economics Decisions
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6. Consider the following two-player game:
2
L M
U 3,3 2,3
1 M 2,1 3,1
D
R
0,2
3,3
0,3 3,0-5, -5
a. Find all pure NE.
b. Find a (non-pure) MNE in which player 1 (the row player) plays a pure
strategy.
c. (Harder Question) Show that there cannot be a CE prescribing that strat-
egy D of player 1 (the column player) is played with positive probability.
Transcribed Image Text:6. Consider the following two-player game: 2 L M U 3,3 2,3 1 M 2,1 3,1 D R 0,2 3,3 0,3 3,0-5, -5 a. Find all pure NE. b. Find a (non-pure) MNE in which player 1 (the row player) plays a pure strategy. c. (Harder Question) Show that there cannot be a CE prescribing that strat- egy D of player 1 (the column player) is played with positive probability.
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