Compute the pure-strategy and mixed-strategy nash, Game Theory

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Compute the pure-strategy and mixed-strategy nash

This exercise explores how, in a mixed-strategy equilibrium, players must put positive probability only on best responses. Consider the game in the following figure.

1559_Figure 5.jpg

Compute the pure-strategy and mixed-strategy Nash equilibria for this game, and note how they depend on x. In particular, what is the difference between x > 1 and x.

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Game Theory: Compute the pure-strategy and mixed-strategy nash

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