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(a) Determine the pure Nash equilibria of G. (b) Rose A, B, Colin A, B is a mixed Nash equilibrium of H. (You do not have to verify this.) Determine the expected payoffs of both players given that they choose their strategies according to this Nash equilibrium. (c) Draw the payoff polygon of H. Indicate on your diagram the points corresponding to the Nash equilibria of H, and the points corresponding to Pareto optimal solu- tions of H.

(a) Determine the pure Nash equilibria of G. (b) Rose A, B, Colin A, B is a mixed Nash equilibrium of H. (You do not have to verify this.) Determine the expected payoffs of both players given that they choose their strategies according to this Nash equilibrium. (c) Draw the payoff polygon of H. Indicate on your diagram the points corresponding to the Nash equilibria of H, and the points corresponding to Pareto optimal solu- tions of H.

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter8: Game Theory
Section: Chapter Questions
Problem 8.1P
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Let G be the following static game. Rose Colin A A (3,4) B (4,2) B (1,5) (0, 1) (a) Determine the pure Nash equilibria of G. (b) Rose A, B, Colin A, B is a mixed Nash equilibrium of H. (You do not have to verify this.) Determine the expected payoffs of both players given that they choose their strategies according to this Nash equilibrium. (c) Draw the payoff polygon of H. Indicate on your diagram the points corresponding to the Nash equilibria of H, and the points corresponding to Pareto optimal solu- tions of H.
Transcribed Image Text:Let G be the following static game. Rose Colin A A (3,4) B (4,2) B (1,5) (0, 1) (a) Determine the pure Nash equilibria of G. (b) Rose A, B, Colin A, B is a mixed Nash equilibrium of H. (You do not have to verify this.) Determine the expected payoffs of both players given that they choose their strategies according to this Nash equilibrium. (c) Draw the payoff polygon of H. Indicate on your diagram the points corresponding to the Nash equilibria of H, and the points corresponding to Pareto optimal solu- tions of H.
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