Suppose Carlos and Deborah are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix 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 Carlos chooses Right and Deborah chooses Right, Carlos will receive a payoff of 7 and Deborah will receive a payoff of 6.
Suppose Carlos and Deborah are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix 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 Carlos chooses Right and Deborah chooses Right, Carlos will receive a payoff of 7 and Deborah will receive a payoff of 6.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose Carlos and Deborah are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix 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 Carlos chooses Right and Deborah chooses Right, Carlos will receive a payoff of 7 and Deborah will receive a payoff of 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: Carlos chooses ____ and Deborah chooses ____ .
![Deborah
Left
Right
Left
4, 3
6, 4
Carlos
Right
6, 7
7, 6](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb3622bd6-b52b-4f18-bd16-6cce99e7889a%2F74a91b41-5b30-4146-b682-a1d49b45eb9c%2Fdin7uji_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Deborah
Left
Right
Left
4, 3
6, 4
Carlos
Right
6, 7
7, 6
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