Consider the Normal Form Game characterized in the following figure: P1 \ P2 A1 A2 A3 A4 B1 (-1,1) (-2,-2) (5.7) (0,3) B2 B3 B4 (0,0) (1,-1) (2.0) (2,7) (-1,-1) (-1,1) (3,5) (0,0) (0,8) (-1,-1) (10,2) (0,0) Which is the set of rationalizable actions? O [A2, A4)x(B2, B3) O [A1, A2)x(B1, B2, B4) O [A1, A3)x(B1, B4) O [A1, A3, A4}x{B1, B3}
Consider the Normal Form Game characterized in the following figure: P1 \ P2 A1 A2 A3 A4 B1 (-1,1) (-2,-2) (5.7) (0,3) B2 B3 B4 (0,0) (1,-1) (2.0) (2,7) (-1,-1) (-1,1) (3,5) (0,0) (0,8) (-1,-1) (10,2) (0,0) Which is the set of rationalizable actions? O [A2, A4)x(B2, B3) O [A1, A2)x(B1, B2, B4) O [A1, A3)x(B1, B4) O [A1, A3, A4}x{B1, B3}
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:Consider the Normal Form Game characterized in the following figure:
P1 \ P2
A1
A2
A3
A4
B1
B2
B3
B4
(-1,1)
(0,0)
(1,-1) (2,0)
(-2,-2) (2,7)
(-1,-1)
(-1,1)
(5,7)
(3,5)
(0,0) (0,8)
(0,3)
(-1,-1) (10,2) (0,0)
Which is the set of rationalizable actions?
O (A2, A4)x(B2, B3)
O (A1, A2)x(B1, B2, B4)
O (A1, A3)x(B1, B4)
O (A1, A3, A4}x{B1, B3)
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