The payoff matrix for a two-player normal form game is given below. M N O A 1,2 2,2 4,2 B 4,5 5,1 1,5 C 6,3 2,4 7,3 Denote the probability of playing "M" for Player 1 as p and the probability of playing "B" for Player 2 as q. At which value of q will Player 1 be willing to mix between O and M? Write your answer as a decimal number with 2 decimal places (e.g. 0.05)
The payoff matrix for a two-player normal form game is given below. M N O A 1,2 2,2 4,2 B 4,5 5,1 1,5 C 6,3 2,4 7,3 Denote the probability of playing "M" for Player 1 as p and the probability of playing "B" for Player 2 as q. At which value of q will Player 1 be willing to mix between O and M? Write your answer as a decimal number with 2 decimal places (e.g. 0.05)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:The payoff matrix for a two-player normal form game is given below.
M
N
O
A
1,2
2,2
4,2
B
4,5
5,1
1,5
C
6,3
2,4
7,3
Denote the probability of playing "M" for Player 1 as p and the probability of playing "B" for Player 2 as q.
At which value of q will Player 1 be willing to mix between O and M?
Write your answer as a decimal number with 2 decimal places (e.g. 0.05)
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