Ask Question
23 June, 10:39

Suppose Antonio and Caroline are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoffs each person will earn as a function of both of their choices. Forexample, the lower-right cell shows that if Antonio chooses Right Caroline chooses Right, Antonio will receive a payoff of 5 and Caroline will receive a payoff of 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 : Antonio chooses ... and Caroline chooses ...

+2
Answers (1)
  1. 23 June, 11:44
    0
    Answer: See explanation column for answer

    Explanation:

    Caroline

    left Right

    Anthonio left 6,6 6,3

    Right 4,3 5,5

    The first digits in both left and right is Anthonio's best response payoff given what Caroline chooses. Also, the second digit on both left and right is Caroline's best response payoff based on what Anthonio chooses.

    When Antonio chooses left, Caroline should choose left so as to get a payoff of 6, also when Antonio chooses right, Caroline chooses right to get a payoff of 5. therefore, there is no dominant strategy for Caroline.

    The dominant strategy for Antonio occurs

    When Caroline chooses left, Antonio will have to choose left to get a payoff of 6, also when Caroline chooses right, Antonio should choose left to get a payoff of 6. So, the dominant strategy for Antonio is to choose left.

    The only dominant strategy in this game is for Antonio, to choose left.

    b). For Nash Equilibrum, Antonio will have to choose his dominant strategy, that is to choose left, which will make Caroline is to choose left so as to get a payoff of 6. So, the Nash equilibrium is for Antonio to choose left and caroline chooses left too
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Suppose Antonio and Caroline are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers