Suppose Russell and Aaliyah 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 Russell chooses Up and Aaliyah chooses Down, Russell will receive a payoff of 6 and Aaliyah will receive a payoff of 1. Aaliyah Up Down Up 4,3 6, 1 Russell Down 7,6 4,4 In this game, the only dominant strategy is for to choose The outcome reflecting the unique Nash equilibrium in this game is as follows: Russell chooses and Aaliyah chooses
Suppose Russell and Aaliyah 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 Russell chooses Up and Aaliyah chooses Down, Russell will receive a payoff of 6 and Aaliyah will receive a payoff of 1. Aaliyah Up Down Up 4,3 6, 1 Russell Down 7,6 4,4 In this game, the only dominant strategy is for to choose The outcome reflecting the unique Nash equilibrium in this game is as follows: Russell chooses and Aaliyah chooses
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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