For the following simultaneous move game, we want to find a mixed strategy Nash equilibrium. ROWENA Safe Risky Safe 4*q + 4*(1-q) = 1 4,4 1,4 COLIN Risky 4,1 6,6 We denote Colin's mixture probability on Safe by q.. To find q in Colin's mixed strategy Nash equilibrium, we apply indifference property to player Rowena 's expected payoffs from pure strategies in mixture: *q + 6 *(1-q)

For the following simultaneous move game, we want to find a mixed strategy Nash equilibrium. ROWENA Safe Risky Safe 4q + 4(1-q) = 1 4,4 1,4 COLIN Risky 4,1 6,6 We denote Colin's mixture probability on Safe by q.. To find q in Colin's mixed strategy Nash equilibrium, we apply indifference property to player Rowena 's expected payoffs from pure strategies in mixture: q + 6 (1-q)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.1P

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