Use the following payoff matrix for a one-shot game to answer the accompanying questions.
| Player 2 | |||
| Strategy | X | Y | |
| Player 1 | A | 50, 50 | -110, 6 |
| B | 6, -110 | 26, 26 |
a. Determine the Nash equilibrium outcomes that arise if the players make decisions independently, simultaneously, and without any communication.
check all that apply
- (26,26)
- (50,50)
- (-110,6)
- (6,-110)
Which of these outcomes would you consider most likely?
multiple choice 1
-
(-110,6)
-
(50,50)
-
(6,-110)
-
(26,26)
b. Suppose player 1 is permitted to “communicate” by uttering one syllable before the players simultaneously and independently make their decisions. What should player 1 utter?
multiple choice 2
-
B
-
A
What outcome do you think would occur as a result?
multiple choice 3
-
(26,26)
-
(50,50)
-
(-110,6)
-
(6,-110)
c. Suppose player 2 can choose its strategy before player 1, that player 1 observes player 2’s choice before making her decision, and that this move structure is known by both players. What outcome would you expect?
multiple choice 4
-
(26,26)
-
(6,-110)
-
(50,50)
-
(-110,6)
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