Business, 24.03.2021 17:10 denaemarie02
Suppose Carlos and Deborah are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Carlos chooses Right and Deborah chooses Right, Carlos will receive a payoff of 7 and Deborah will receive a payoff of 4.
Carlos
Left Right
Deborah Left 6, 6 6, 3
Right 4, 3 5, 5
The only dominant strategy in this game is for to choose .
The outcome reflecting the unique Nash equilibrium in this game is as follows:
Deborah chooses and Carlos chooses .
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Suppose Carlos and Deborah are playing a game in which both must simultaneously choose the action Le...
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