Solve parts 1(a) , 1(b) and 1(c) ONLY Consider this as a simultaneous-move (static) game:Player A has three available strategies: Top, Middle, and Bottom. Player B has two availablestrategies: Left and Right.Player BLeftRightTop5,11,3Player AMiddle0,42,4Bottom4,23,71. a) Write down the Best Response Correspondence for each player.1. b) Does any player have a dominant strategy in this game? Explain.1. c) Does any player have a dominated strategy in this game? Explain.1. d) Find all Nash Equilibria in pure strategies of this game.1. e) Suppose Player A rules out the "Middle" strategy. The game is the same except withoutPlayer A's "Middle" strategy row. Is there any Nash Equilibria in mixed strategies? If so, findit.

There are two players : Player A & Player B Strategy Set of Player A : { Top , Medium , Bottom…

Answered: Consider this as a simultaneous-move…

Consider this as a simultaneous-move (static) game: Player A has three available strategies: Top, Middle, and Bottom. Player B has two available strategies: Left and Right.

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 9MC

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Question

Solve parts 1(a) , 1(b) and 1(c) ONLY

Consider this as a simultaneous-move (static) game:
Player A has three available strategies: Top, Middle, and Bottom. Player B has two available
strategies: Left and Right.
Player B
Left
Right
Top
5,1
1,3
Player A
Middle
0,4
2,4
Bottom
4,2
3,7
1. a) Write down the Best Response Correspondence for each player.
1. b) Does any player have a dominant strategy in this game? Explain.
1. c) Does any player have a dominated strategy in this game? Explain.
1. d) Find all Nash Equilibria in pure strategies of this game.
1. e) Suppose Player A rules out the "Middle" strategy. The game is the same except without
Player A's "Middle" strategy row. Is there any Nash Equilibria in mixed strategies? If so, find
it.

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Step 3: Find dominant strategy

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