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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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 |
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