This is a two-player, simultaneous one-move game represented as a game table (normal form). What is the pure strategy Nash equilibrium outcome if there is one? Is this a socially optimal outcome? If not, which outcome is preferred?
This is a two-player, simultaneous one-move game represented as a game table (normal form). What is the pure strategy Nash equilibrium outcome if there is one? Is this a socially optimal outcome? If not, which outcome is preferred?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
This is a two-player, simultaneous one-move game represented as a game table (normal form).
What is the pure strategy Nash equilibrium outcome if there is one?
Is this a socially optimal outcome? If not, which outcome is preferred?

Transcribed Image Text:P1 \ P2
А
B
C
D
А
(17, 5)
(11, 16)
(15, 4)
(3, 16)
(7, 13)
(2, 10)
(13, 9)
(20, 5)
C
(12, 2)
(6, 9)
(20, 8)
(3, 7)
(1, 20)
(10, 20)
(2, 12)
(1, 17)
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