On 24 February 2022, Russian President Vladimir Putin gave orders for Russian troops to invade Ukraine. This invasion of Ukraine followed statements by the Russian government that Ukrainian soldiers had destroyed a Russian Security border facility and attempted to enter Russian territory illegally; accusations which Ukrainian officials strongly denied. The invasion of Ukraine has gathered worldwide attention, and has been strongly denounced by citizens, governments and international organisations. In an attempt to try and resolve the conflict, President Putin of Russia and President Zelenskyy of Ukraine have agreed to engage with one another surrounding ways of coming to a peaceful agreement between the two sides. Another round of peace negotiations were scheduled to take place on 16 March 2022. Imagine that in these negotiations, President Zeleskyy and President Putin have two strategies available to them: either they can be firm about their position and stand their ground regarding their position on the invasion (Stand Ground), or they can choose to soften their position slightly to reach a compromise with the opposing party (Compromise). The interaction between the two presidents is modelled by the game table below. President Putin Stand Ground Stand Ground Compromise 0, 1 4,5 Compromise 6, 4 2, 2 President ZelenskyY (a) List the Nash Equilibrium/Equilibria and the corresponding Nash Equilibrium Outcome(s) of the game above.
On 24 February 2022, Russian President Vladimir Putin gave orders for Russian troops to invade Ukraine. This invasion of Ukraine followed statements by the Russian government that Ukrainian soldiers had destroyed a Russian Security border facility and attempted to enter Russian territory illegally; accusations which Ukrainian officials strongly denied. The invasion of Ukraine has gathered worldwide attention, and has been strongly denounced by citizens, governments and international organisations. In an attempt to try and resolve the conflict, President Putin of Russia and President Zelenskyy of Ukraine have agreed to engage with one another surrounding ways of coming to a peaceful agreement between the two sides. Another round of peace negotiations were scheduled to take place on 16 March 2022. Imagine that in these negotiations, President Zeleskyy and President Putin have two strategies available to them: either they can be firm about their position and stand their ground regarding their position on the invasion (Stand Ground), or they can choose to soften their position slightly to reach a compromise with the opposing party (Compromise). The interaction between the two presidents is modelled by the game table below. President Putin Stand Ground Stand Ground Compromise 0, 1 4,5 Compromise 6, 4 2, 2 President ZelenskyY (a) List the Nash Equilibrium/Equilibria and the corresponding Nash Equilibrium Outcome(s) of the game above.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:On 24 February 2022, Russian President Vladimir Putin gave orders for Russian troops to invade
Ukraine. This invasion of Ukraine followed statements by the Russian government that
Ukrainian soldiers had destroyed a Russian Security border facility and attempted to enter
Russian territory illegally; accusations which Ukrainian officials strongly denied. The invasion
of Ukraine has gathered worldwide attention, and has been strongly denounced by citizens,
governments and international organisations.
In an attempt to try and resolve the conflict, President Putin of Russia and President Zelenskyy
of Ukraine have agreed to engage with one another surrounding ways of coming to a peaceful
agreement between the two sides. Another round of peace negotiations were scheduled to
take place on 16 March 2022. Imagine that in these negotiations, President Zeleskyy and
President Putin have two strategies available to them: either they can be firm about their
position and stand their ground regarding their position on the invasion (Stand Ground), or
they can choose to soften their position slightly to reach a compromise with the opposing party
(Compromise). The interaction between the two presidents is modelled by the game table
below.
President Putin
Stand Ground
Compromise
6, 4
Stand Ground
Compromise
0,1
4,5
President Zelenskyy
2, 2
(a) List the Nash Equilibrium/Equilibria and the corresponding Nash Equilibrium
Outcome(s) of the game above.
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