Find any Nash equilibria in the game below. Firm B Co-operate Don’t co-operate Firm A Co-operate 60 60 0 80 Don’t co-operate 80 0 10 10 Answer a. There is one Nash equilibrium: both firms don't co-operate. b. There are no Nash equilibria. c. There are two Nash equilibria: one firm co-operates and the other firm doesn't co-operate. d. There are two Nash equilibria: (i) both firms co-operate and (ii) both firms don't co-operate.
Find any Nash equilibria in the game below. Firm B Co-operate Don’t co-operate Firm A Co-operate 60 60 0 80 Don’t co-operate 80 0 10 10 Answer a. There is one Nash equilibrium: both firms don't co-operate. b. There are no Nash equilibria. c. There are two Nash equilibria: one firm co-operates and the other firm doesn't co-operate. d. There are two Nash equilibria: (i) both firms co-operate and (ii) both firms don't co-operate.
Chapter8: Game Theory
Section: Chapter Questions
Problem 8.1P
Related questions
Question
Find any Nash equilibria in the game below.
Firm B |
|||
Co-operate |
Don’t co-operate |
||
Firm A |
Co-operate |
60 60 |
0 80 |
Don’t co-operate |
80 0 |
10 10 |
Answer
a.
There is one Nash equilibrium: both firms don't co-operate.
b.
There are no Nash equilibria.
c.
There are two Nash equilibria: one firm co-operates and the other firm doesn't co-operate.
d.
There are two Nash equilibria: (i) both firms co-operate and (ii) both firms don't co-operate.
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