Determine what will be the outcome of the game

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Reference no: EM13221790

Suppose that two players are playing the following game. Player A can choose either Top or Bottom, and Player B can choose either Left or Right. The payoffs are given in the following table:

Player B

LEFT RIGHT

Top 4 5 1 4

Player A Bottom 5 1 3 8

where the number on the left is the payoff to Player A, and the number on the right is the payoff to Player B.

A) Does player A have a dominant strategy, and if so what is it?

B) Does player B have a dominant strategy and if so what is it?

C) For each of the following say True if the strategy combination is a Nash equilibrium, and False if it is not a Nash equilibrium:

i) Player A plays Top and Player B plays Left

ii) Player A plays Bottom and Player B plays Left

iii) Player A plays Top and Player B plays Right

iv) Player A plays Bottom and Player B plays Right

D) If each player plays her maximin strategy what will be the outcome of the game?

E) Now suppose the same game is played with the exception that Player A moves first and Player B moves second. Using the backward induction method discussed in the online class notes, what will be the outcome of the game?

Reference no: EM13221790

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