Game Theory N-person simultaneous game question Please help with explanation and step by step answer Thank you so much

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter8: Game Theory
Section: Chapter Questions
Problem 8.9P
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Game Theory
N-person simultaneous game question
Please help with explanation and step by step
answer
Thank you so much
Consider the following 20-person, simultaneous game:
Suppose there are 20 farmers sharing a pasture. Each of the farmers can decide if he
grazes an Extra cow in the pasture (2 cows) or Not (1 cow).
Profit per cow
$3000 – $100 (total number of cows in the pasture - 20)
%3D
|3|
(a) Show that Extra dominates Not.
(b) Hence, find a Nash equilibrium and the corresponding payoffs.
Transcribed Image Text:Game Theory N-person simultaneous game question Please help with explanation and step by step answer Thank you so much Consider the following 20-person, simultaneous game: Suppose there are 20 farmers sharing a pasture. Each of the farmers can decide if he grazes an Extra cow in the pasture (2 cows) or Not (1 cow). Profit per cow $3000 – $100 (total number of cows in the pasture - 20) %3D |3| (a) Show that Extra dominates Not. (b) Hence, find a Nash equilibrium and the corresponding payoffs.
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