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Business, 08.07.2021 15:40 heatwave9856
Suppose Jacques and Kyoko 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 Jacques chooses Right and Kyoko chooses Right, Jacques will receive a payoff of 5 and Kyoko will receive a payoff of 3.
Kyoko
Left Right
Jacques Left 4, 4 6, 3
Right 5, 4 5, 3
The only dominant strategy in this game is for to choose . The outcome reflecting the unique Nash equilibrium in this game is as follows: Jacques chooses and Kyoko chooses .
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Suppose Jacques and Kyoko are playing a game in which both must simultaneously choose the action Lef...
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