ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Consider a game in which two players simultaneously pick an integer from 1 through 10. Let s1 denote choice of player 1, and let
S2 denote the choice of player 2. If s1 7 82 then player 1's payoff is:
Si + 82
2
and player 2's payoff is
10 – ,*.
Si + 82
2
If s1 = 82 then each player gets 5.
How many pure strategy Nash equilibria does the game have (you will get full points if you are within 2 of the correct answer)?
Numerical answer
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Transcribed Image Text:Consider a game in which two players simultaneously pick an integer from 1 through 10. Let s1 denote choice of player 1, and let S2 denote the choice of player 2. If s1 7 82 then player 1's payoff is: Si + 82 2 and player 2's payoff is 10 – ,*. Si + 82 2 If s1 = 82 then each player gets 5. How many pure strategy Nash equilibria does the game have (you will get full points if you are within 2 of the correct answer)? Numerical answer
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