For the following simultaneous move game, we want to find a mixed strategy Nash equilibrium. ROWENA Safe Risky Safe 4*q + 4*(1-q) = 1 4,4 1,4 COLIN Risky 4,1 6,6 We denote Colin's mixture probability on Safe by q.. To find q in Colin's mixed strategy Nash equilibrium, we apply indifference property to player Rowena 's expected payoffs from pure strategies in mixture: *q + 6 *(1-q)
For the following simultaneous move game, we want to find a mixed strategy Nash equilibrium. ROWENA Safe Risky Safe 4*q + 4*(1-q) = 1 4,4 1,4 COLIN Risky 4,1 6,6 We denote Colin's mixture probability on Safe by q.. To find q in Colin's mixed strategy Nash equilibrium, we apply indifference property to player Rowena 's expected payoffs from pure strategies in mixture: *q + 6 *(1-q)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![For the following simultaneous move game, we want to find a mixed strategy Nash
equilibrium.
ROWENA
Safe
4*q + 4*(1-q) =
Risky
Safe
1
4,4
1,4
COLIN
Risky
4,1
We denote Colin's mixture probability on Safe by q..
To find q in Colin's mixed strategy Nash equilibrium, we apply indifference property
to player Rowena
's expected payoffs from pure strategies in mixture:
6,6
+q+6
*(1-q)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa12c9976-cefd-48dc-ab9d-01086784ab8e%2F58e68d70-b816-4983-9e0a-d62f0a9ead10%2Fcdl2dy_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For the following simultaneous move game, we want to find a mixed strategy Nash
equilibrium.
ROWENA
Safe
4*q + 4*(1-q) =
Risky
Safe
1
4,4
1,4
COLIN
Risky
4,1
We denote Colin's mixture probability on Safe by q..
To find q in Colin's mixed strategy Nash equilibrium, we apply indifference property
to player Rowena
's expected payoffs from pure strategies in mixture:
6,6
+q+6
*(1-q)
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