The following table shows the payoff matrix that represents the strategic interaction between two friends, Amanda and Barbara. They are deciding which island in the Outer Hebrides of Scotland to visit on their holiday. Amanda Barra South Uist Select all the correct answers. Barra 6,3 4,4 Barbara South Uist 2,2 3,6 There are two Nash equilibria In a one-shot, simultaneous game, both Amanda and Barbara will choose to visit Barra since their total happiness would be the highest In a sequential game where Barbara can move first, Amanda would choose to visit South Uist Amanda likes Barra more than South Uist, conditional on both choosing the same island

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The following table shows the payoff matrix that represents the strategic
interaction between two friends, Amanda and Barbara. They are deciding
which island in the Outer Hebrides of Scotland to visit on their holiday.
Amanda
Barral
South Uist
Select all the correct answers.
Barra
6,3
4,4
Barbara
South Uist
2,2
3,6
There are two Nash equilibria
In a one-shot, simultaneous game, both Amanda and Barbara will choose to visit
Barra since their total happiness would be the highest
In a sequential game where Barbara can move first, Amanda would choose to visit
South Uist
Amanda likes Barra more than South Uist, conditional on both choosing the same
island
Transcribed Image Text:The following table shows the payoff matrix that represents the strategic interaction between two friends, Amanda and Barbara. They are deciding which island in the Outer Hebrides of Scotland to visit on their holiday. Amanda Barral South Uist Select all the correct answers. Barra 6,3 4,4 Barbara South Uist 2,2 3,6 There are two Nash equilibria In a one-shot, simultaneous game, both Amanda and Barbara will choose to visit Barra since their total happiness would be the highest In a sequential game where Barbara can move first, Amanda would choose to visit South Uist Amanda likes Barra more than South Uist, conditional on both choosing the same island
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