Use the following payoff matri

Use the following payoff matrix for a one-shot game to answer the accompanying questions.

A 5,5 0, -200
B -200, 0 20, 20
  1. Determine the Nash equilibrium outcomes that arise if the players make decisions independently, simultaneously, and without any communication. Which of these outcomes would you consider most likely? Explain.

 

  1. Suppose player 1 is permitted to “communicate” by uttering one syllable before the players simultaneously and independently make their decisions. What should player 1 utter, and what outcome do you think would occur as a result?

Use the following payoff matri

Use the following payoff matrix for a simultaneous-move one-shot game to answer the accompanying questions.
Player 2
Strategy C D E F
Player 1 A 25, 15 4, 20 16, 14 28, 12
B 10, 10 5, 15 8, 6 18, 13
a. What is player 1’s optimal strategy? Why?
b. Determine player 1’s equilibrium payoff.

Consider a two-player, sequential-move game where each player can choose to play right or left. Player 1 moves first. Player 2 observes player 1’s actual move and then decides to move right or left. If player 1 moves right, player 1 receives $0 and player 2 receives $15. If both players move left, player 1 receives – $10 and player 2 receives $8. If player 1 moves left and player 2 moves right, player 1 receives 10 and player 2 receives $10.
a. Write the above game in extensive form.
b. Find the ash equilibrium outcomes to this game.
c. Which of the equilibrium outcomes is most reasonable? Explain.

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