Consider the game below. The symbols x, y represent arbitrary numbers. U M D L 1,4 4,2 5, 2 с 0, 3 3, 5 x, y R 3, 2 6, 3 5, 5 Consider the strategy profile: the row player plays M with probability 0.5 and D with probability 0.5 (U is never played); the column player plays C with probability 0.5 and R with probability 0.5 (L is never played). Consider the list of values (x, y) below. Which of them makes this strategy profile a Nash equilibrium? Hint: remember repeated elimination of strictly dominated strategies, then use the indifference principle.
Consider the game below. The symbols x, y represent arbitrary numbers. U M D L 1,4 4,2 5, 2 с 0, 3 3, 5 x, y R 3, 2 6, 3 5, 5 Consider the strategy profile: the row player plays M with probability 0.5 and D with probability 0.5 (U is never played); the column player plays C with probability 0.5 and R with probability 0.5 (L is never played). Consider the list of values (x, y) below. Which of them makes this strategy profile a Nash equilibrium? Hint: remember repeated elimination of strictly dominated strategies, then use the indifference principle.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
** please be advised this is for practice only in preperation **
(a) x = 4, y = 3
(b) x = 1, y = 2
(c) x = 0, y = 3
(d) x = 4, y = 0
(e) None of the values above make this strategy profile a Nash equilibrium.
Transcribed Image Text:Consider the game below. The symbols x, y represent arbitrary numbers.
U
M
D
L
1,4
4,2
5, 2
с
0, 3
3, 5
x, y
R
3, 2
6, 3
5, 5
Consider the strategy profile: the row player plays M with probability 0.5 and D with
probability 0.5 (U is never played); the column player plays C with probability 0.5
and R with probability 0.5 (L is never played). Consider the list of values (x, y) below.
Which of them makes this strategy profile a Nash equilibrium? Hint: remember repeated
elimination of strictly dominated strategies, then use the indifference principle.
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