Jim is dealt two cards : ♡8 and ♠9. Angella is also dealt two cards: ♢6 and ♣6. Now, each of the players will play 1 card both at the same time. The payoff of Jim is 4 points if he plays a card of opposite color (red/black) than Angella, and otherwise his payoff is 10 points. The payoff of Angella is 3 points if the difference of the already played card numbers is greater than 4, otherwise her payoff is 2 points. Find the action sets of each player and the action profile of the game. Represent the game in the Normal form. Find the Best Responses for Jim. Find the Best Responses for Angella. Find all the Nash Equilibriums of the game (if any).
Jim is dealt two cards : ♡8 and ♠9. Angella is also dealt two cards: ♢6 and ♣6. Now, each of the players will play 1 card both at the same time. The payoff of Jim is 4 points if he plays a card of opposite color (red/black) than Angella, and otherwise his payoff is 10 points. The payoff of Angella is 3 points if the difference of the already played card numbers is greater than 4, otherwise her payoff is 2 points. Find the action sets of each player and the action profile of the game. Represent the game in the Normal form. Find the Best Responses for Jim. Find the Best Responses for Angella. Find all the Nash Equilibriums of the game (if any).
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Jim is dealt two cards : ♡8 and ♠9. Angella is also dealt two cards: ♢6 and ♣6. Now, each of the players will play 1 card both at the same time.
The payoff of Jim is 4 points if he plays a card of opposite color (red/black) than Angella, and otherwise his payoff is 10 points.
The payoff of Angella is 3 points if the difference of the already played card numbers is greater than 4, otherwise her payoff is 2 points.
- Find the action sets of each player and the action profile of the game.
- Represent the game in the Normal form.
- Find the Best Responses for Jim.
- Find the Best Responses for Angella.
- Find all the Nash Equilibriums of the game (if any).
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