Problem: Consider the following two person game, between A and B.
Hold Not hold
drive X, 2 3, Z
stop 10, Y 2, 6
(1) Given an example of values for X, Y and Z so that there is a dominant strategy equilibrium.
(2) If X = 8, Y = 4 and Z = 0, how many Nash equilibrium does the game have?
(3) Pick values for X, Y and Z to get the most possible Nash equilibrium you can in this game. How many NE do you have and what are they?