(a) By constructing best response functions, find all pure and mixed strategy Nash equi- libria for the following 2 x 2 game. Ann 4\ Bill -→ C1 C2 R1 7,2 3,1 R2 4,2 6,8 (b) Verify that the mixed strategy (,,0) for Ann, and (,0, ) for Bill form a Nash equilibrium in the game Ann 4\ Bill → C1 C2 C3 R1 3,3 9,4 8,6 R2 5,6 1,3 6,4 R3 4,7 7,2 4,5 State clearly any results you use as part of your reasoning.

(a) By constructing best response functions, find all pure and mixed strategy Nash equi- libria for the following 2 x 2 game. Ann 4\ Bill -→ C1 C2 R1 7,2 3,1 R2 4,2 6,8 (b) Verify that the mixed strategy (,,0) for Ann, and (,0, ) for Bill form a Nash equilibrium in the game Ann 4\ Bill → C1 C2 C3 R1 3,3 9,4 8,6 R2 5,6 1,3 6,4 R3 4,7 7,2 4,5 State clearly any results you use as part of your reasoning.

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Oligopoly

Section: Chapter Questions

Problem 5PA

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