Question Question 1: Consider the situation represented by the following bimatrix: a) Is there a strictly dominant strategy equilibrium of this game? Explain. b) Is there a weakly dominant strategy equilibrium of this game? c) What are the Nash equilibria of this game? Explain using best responses. L M R U 1,0 2,5 -2,-1 D 2,1 2,1 -3,2

DONKBK The Asker · Economics

Question 1: Consider the situation represented by the following bimatrix:

a) Is there a strictly dominant strategy equilibrium of this game? Explain.

b) Is there a weakly dominant strategy equilibrium of this game?

c) What are the Nash equilibria of this game? Explain using best responses.

Transcribed Image Text: L M R U 1,0 2,5 -2,-1 D 2,1 2,1 -3,2

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Transcribed Image Text: L M R U 1,0 2,5 -2,-1 D 2,1 2,1 -3,2

Community Answer

CJ5M2J

a) Let us assume that U and D is Actions (stretegy) of player 1 and L,M and R ir Actions/stredegy) of player 2 .Lo player 1 has no strictly dominant strategy as there is no Action. whose payoft is aluays greatier thon other ActionsfinceSimilarly for player 2 has no strictly dominant strategy as there is no Action among L,m and R whose payoff is always grecter than others. to there will ke no strict dominant strategy equilibinum.b) Player 1 has no weckly dominant strategy: as as there is no strategy in V and D whose puyoff is aliays greatpr than or equal to the pay off of other strategies.Beause if player 2 plays L then payoff from D is greater than 1 pay off from u bit if player 2 plays R then pryoff from U is greater than payoff from D for play ... See the full answer