Microeconomics
Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Chapter 20.1, Problem 2Q
To determine

The strategy of B when A confesses.

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The childhood game of Rock–Paper–Scissors is shown in the accompanying figure. Show that each player’s assigning equal probability to his or her three pure strategies is a symmetric Nash equilibrium.
Suppose that you and a friend play a matching pennies game in which each of you uncovers a penny. If both pennies show heads or both show tails, you keep both. If one shows heads and the other shows tails, your friend keeps them. Show the pay- off matrix. What, if any, is the pure-strategy Nash equilibrium to this game? Is there a mixed-strategy Nash equilibrium? If so, what is it?
Imagine a game where individuals can be either cooperative (like splitting a resource) or selfish (like grabbing the entire resource). Depending on the relative costs and benefits of interacting and the resource, there might be a variety of possible payoff matrices for such an interaction. Of the following matrices, which one illustrates the largest “temptation to cheat?”
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