Name:1. Consider the following simultaneous move game:a.2.54RowTopUpDownBottomN16xe mszbiMLeft5,52,63,13,5ColumnCenter8,410,15,49,7Middle(6,62,43,34,5Right5,42,4163,420hunini 02:hobeUse the method of iterated elimination of dominated strategies to eliminate as many strategies aspossible for each player. Briefly explain your steps. (4 marks)26 5100Wsed mexapm/ebulb. Using the method of best responses, find the Nash Equilibrium of this game. Mark the best response onthe matrix and circle the NE. Briefly explain why this is a NE. (4 marks)anatibunenkc. Consider the outcome (Bottom, Center), briefly explain why this is NOT a Nash Equilibrium. (2 marks)

The objective of the question is to analyze a simultaneous move game using the method of iterated…

Answered: Name: 1. Consider the following…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter15: Oligopoly And Strategic Behavior

Section: Chapter Questions

Problem 17P

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