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Suppose Shen and Valerie 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 Shen chooses Right and Valerie chooses Right, Shen will receive a payoff of 7 and Valerie will receive a payoff of 6.
YvetteYvette
Left Right
SeanLeft4,66,8
SeanRight7,53,7
The only dominant strategy in this game is for to choose .
The outcome reflecting the unique Nash equilibrium in this game is as follows:
Sean chooses and Yvette chooses .
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Suppose Shen and Valerie are playing a game in which both must simultaneously choose the action Left...
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