(b) Two people, 1 and 2, independently choose an integer 1 and 4. If the choices are the same, each person receives an amount of money equal to the number chosen. Otherwise neither player receives anything. Each player's preferences are represented by his expected monetary payoff. (i) What are the pure strategy Nash equilibria of the game?

(b) Two people, 1 and 2, independently choose an integer 1 and 4. If the choices are the same, each person receives an amount of money equal to the number chosen. Otherwise neither player receives anything. Each player's preferences are represented by his expected monetary payoff. (i) What are the pure strategy Nash equilibria of the game?

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter13: Between Competition And Monopoly

Section: Chapter Questions

Problem 10DQ

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