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(Solved): 5. Consider a simultaneous game in which player A chooses one of two actions (Up or Down), and B ch ...
5. Consider a simultaneous game in which player A chooses one of two actions (Up or Down), and B chooses one of two actions (Left or Right). The game has the following payoff matrix, where the first payoff in each entry is for A and the second for B.(8 points) a. Find the Nash equilibrium or equilibria. b. Which player, if any, has a dominant strategy?
Expert Answer
Step 1 a) In order to find the Nash equilibrium we will see the best response of each of the player to the strategy pl