In the game shown below, Players 1 and 2 are competing over how to divide up $100. Each player must move at the same time without knowledge of the other player’s move. The table shows the payoff for Player1 (Player 2’s payoff is $100 Player 1’s Payoff). Find the Nash equilibrium(s) for this game. That is, what strategy should Player 1 and Player 2 use for this game? If the Players use their optimal strategy, what will be the payoff for each player in this game? Player 2 Player 1 Left Middle Right Up 40 30 50 Middle 20 50 40 Down 30 20 30

In the game shown below, Players 1 and 2 are competing over how to divide up $100. Each player must move at the same time without knowledge of the other player’s move. The table shows the payoff for Player1 (Player 2’s payoff is $100 Player 1’s Payoff). Find the Nash equilibrium(s) for this game. That is, what strategy should Player 1 and Player 2 use for this game? If the Players use their optimal strategy, what will be the payoff for each player in this game? Player 2 Player 1 Left Middle Right Up 40 30 50 Middle 20 50 40 Down 30 20 30

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter15: Strategic Games

Section: Chapter Questions

Problem 2MC

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A payoff matrix is shown below. With the payoffs in each field indicated in the form (Player 1’s payoff, Player 2’s payoff). Player 2 Left Right Player 1 Up ($1, $1) ($2, $4) Down ($7, $8) ($3, $3) Which of the following is true? The only Nash Equilibrium is Player 1 playing ‘Up’ and Player 2 playing ‘Right’. The only Nash Equilibrium is Player 1 playing ‘Down’ and Player 2 playing ‘Left’. The only Nash Equilibrium is Player 1 playing ‘Down’ and Player 2 playing ‘Right’. None of the other answers provided are true.
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