Player 2 t1 t2 t3 Player 1 S1 3, 4 1, 0 5, 3 S2 0, 12 8, 12 4, 20 S3 2, 0 2, 11 1, 0 Suppose both players select their strategies (S1, S2 or S3 for player 1 and t1, t2 or t3 for player 2) simultaneously and that the game is played once. In your explanation to the questions below, please do refer to the figures in the matrix. Does player 2 have a dominant strategy? If so, which one? Does player 1 have a dominant strategy? If so, which one? No explanation required. Is there one or more Nash equilibria in the game? If so, which one(s)?
Player 2 t1 t2 t3 Player 1 S1 3, 4 1, 0 5, 3 S2 0, 12 8, 12 4, 20 S3 2, 0 2, 11 1, 0 Suppose both players select their strategies (S1, S2 or S3 for player 1 and t1, t2 or t3 for player 2) simultaneously and that the game is played once. In your explanation to the questions below, please do refer to the figures in the matrix. Does player 2 have a dominant strategy? If so, which one? Does player 1 have a dominant strategy? If so, which one? No explanation required. Is there one or more Nash equilibria in the game? If so, which one(s)?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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lease find herewith a payoff matrix. In each cell you find the payoffs of the players associated with a particular strategy combination: The first entry is the payoff of player 1, the second entry is the payoff of player2.
| Player 2 | ||||
| t1 | t2 | t3 | ||
| Player 1 | S1 | 3, 4 | 1, 0 | 5, 3 |
| S2 | 0, 12 | 8, 12 | 4, 20 | |
| S3 | 2, 0 | 2, 11 | 1, 0 |
Suppose both players select their strategies (S1, S2 or S3 for player 1 and t1, t2 or t3 for player 2) simultaneously and that the game is played once. In your explanation to the questions below, please do refer to the figures in the matrix.
- Does player 2 have a dominant strategy? If so, which one?
- Does player 1 have a dominant strategy? If so, which one? No explanation required.
- Is there one or more Nash equilibria in the game? If so, which one(s)?
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