2- Consider the following game.Player 2Player 1 U 12, 2 | 3, 95, 8 4, 2D(a) Find all the Nash equilibria, pure and mixed.(b) Suppose that the payoff of the column player u:(D, L) is reduced from 8 to 6, but all otherpayoffs remain the same. Again, find all the pure- and mixed-strategy Nash equilibria.(c) Compare the mixed-strategy equilibria in parts (a) and (b). Did this worsening in one of player 2'spayoffs change player 2's equilibrium mixed strategy? Did it change player l's? Give some intuition.

Nash equilibrium is an idea inside game theory where the ideal result of a game is in the same…

2- Consider the following game. Player 2 LR Player 1 U 12, 2 3,9 | D 5, 8 4, 2 (a) Find all the Nash equilibria, pure and mixed. (b) Suppose that the payoff of the column player u:(D, L) is reduced from 8 to 6, but all other navoffs remain the same Again find all the nure, and mixed-strategy Nash cauilibria

2- Consider the following game. Player 2 LR Player 1 U 12, 2 3,9 | D 5, 8 4, 2 (a) Find all the Nash equilibria, pure and mixed. (b) Suppose that the payoff of the column player u:(D, L) is reduced from 8 to 6, but all other navoffs remain the same Again find all the nure, and mixed-strategy Nash cauilibria

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.1P

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