Game theory-finding dominant strategy-nash equilibrium


Please assist with the given problem.

Two players, Ben and Diana, can choose strategy X or strategy Y. If both Ben and Diana choose strategy X, each earns a payoff of $1000. If both players choose strategy Y, each earns a payoff of $200. If Ben chooses strategy X and Diana chooses strategy Y, then Ben earns $0 and Diana earns $130. If Ben chooses strategy Y and Diana chooses strategy X, then Ben earns $130 and Diana earns $0.

1) Write the above game in matrix (normal) form.

2) Find each player's dominant strategy, if it exists.

3) Find the Nash equilibrium (or equilibria) of this game.

Solution Preview :

Prepared by a verified Expert
Managerial Economics: Game theory-finding dominant strategy-nash equilibrium
Reference No:- TGS01751558

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)