ltaneously choose the action Left or Right. The payoff matrix/table that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower right cell shows that if Clancy chooses Right and Eileen chooses Right, Clancy will receive a payoff of 3 and Eileen will receive a payoff of 6. Eileen Left Right
ltaneously choose the action Left or Right. The payoff matrix/table that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower right cell shows that if Clancy chooses Right and Eileen chooses Right, Clancy will receive a payoff of 3 and Eileen will receive a payoff of 6. Eileen Left Right
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Solving for dominant strategies and the Nash equilibrium
Suppose Clancy and Eileen are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix/table that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower right cell shows that if Clancy chooses Right and Eileen chooses Right, Clancy will receive a payoff of 3 and Eileen will receive a payoff of 6.
| Eileen | |||
| Left | Right | ||
| Clancy | Left | 5, 6 | 5, 5 |
| Right | 4, 2 | 3, 6 |
The only dominant strategy in this game is for to choose .
The outcome reflecting the unique Nash equilibrium in this game is as follows: Clancy chooses and Eileen chooses .
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