Suppose Felix and Janet 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 Felix chooses Right and Janet chooses Right, Felix will receive a payoff of 3 and Janet will receive a payoff of 7.     Attached the table    The only dominant strategy in this game is for  (Janet / Felix) to choose  (Left / Right).   The outcome reflecting the unique Nash equilibrium in this game is as follows: Felix chooses (Left / Right)  and Janet chooses  (Left / Right).

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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 Solving for dominant strategies and the Nash equilibrium

Suppose Felix and Janet 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 Felix chooses Right and Janet chooses Right, Felix will receive a payoff of 3 and Janet will receive a payoff of 7.
 
 
Attached the table 
 
The only dominant strategy in this game is for  (Janet / Felix) to choose  (Left / Right).
 
The outcome reflecting the unique Nash equilibrium in this game is as follows: Felix chooses (Left / Right)  and Janet chooses  (Left / Right).
Janet
Left
Right
Left
4, 6
6, 8
Felix
Right
7, 5
3, 7
Transcribed Image Text:Janet Left Right Left 4, 6 6, 8 Felix Right 7, 5 3, 7
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