7. Solving for dominant strategies and the Nash equilibriumSuppose Gabriel and Nia are playing a game that requires both to simultaneously choose an action: Up or Down. The payoff matrix that follows showsthe earnings of each person as a function of both of their choices. For example, the upper-right cell shows that if Gabriel chooses Up and Nia choosesDown, Gabriel will receive a payoff of 6 and Nia will receive a payoff of 4.GabrielUpDownUp6,33,3NiaDown6, 47,4In this game, the only dominant strategy is forto chooseThe outcome reflecting the unique Nash equilibrium in this game is as follows: Gabriel choosesand Nia chooses

Best response strategy is the strategy profile that provides the player the maximum payoff…

Answered: In this game, the only dominant…

In this game, the only dominant strategy is for to choose The outcome reflecting the unique Nash equilibrium in this game is as follows: Gabriel chooses and Nia chooses

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

7. Solving for dominant strategies and the Nash equilibrium
Suppose Gabriel and Nia are playing a game that requires both to simultaneously choose an action: Up or Down. The payoff matrix that follows shows
the earnings of each person as a function of both of their choices. For example, the upper-right cell shows that if Gabriel chooses Up and Nia chooses
Down, Gabriel will receive a payoff of 6 and Nia will receive a payoff of 4.
Gabriel
Up
Down
Up
6,3
3,3
Nia
Down
6, 4
7,4
In this game, the only dominant strategy is for
to choose
The outcome reflecting the unique Nash equilibrium in this game is as follows: Gabriel chooses
and Nia chooses

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