Suppose Antonio and Caroline are playing a game in which both must simultaneously choose the action Left or Right. The


Suppose Antonio and Caroline are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Antonio chooses Right and Caroline chooses Right, Antonio will receive a payoff of 4 and Caroline will receive a payoff of 6.
Caroline
Left Right
Antonio Left 2, 3 2,4
Right 3,7 4,6
The only dominant strategy in this game is for to choose . The outcome reflecting the unique Nash equilibrium in this game is as follows: Antonio choosesand Caroline chooses .


Leave a Reply

Your email address will not be published.