In the following two-user game, the payoffs of users Alice and Bob are exactly negative of each other in all the combinations of strategies (a,a), (a,b), (b,a), (b,b). This models an extreme case of competition, and is called a zero-sum game. Please point out every pure-strategy Nash equilibrium of this game, and explain why it is. a b a (1, -1) (3, -3) b (2, -2) (5,-5)

In the following two-user game, the payoffs of users Alice and Bob are exactly negative of each other in all the combinations of strategies (a,a), (a,b), (b,a), (b,b). This models an extreme case of competition, and is called a zero-sum game. Please point out every pure-strategy Nash equilibrium of this game, and explain why it is. a b a (1, -1) (3, -3) b (2, -2) (5,-5)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.2P

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