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Homework answers / question archive / Solving for dominant strategies and the Nash equilibrium Suppose Manuel and Poornima are playing a game in which both must simultaneously choose the action Left or Right
Solving for dominant strategies and the Nash equilibrium
Suppose Manuel and Poornima 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 Manuel chooses Right and Poornima chooses Right, Manuel will receive a payoff of 5 and Poornima will receive a payoff of 1.
Poornima | |||
Left | Right | ||
Manuel | Left | 4, 4 | 6, 7 |
Right | 2, 4 | 5, 1 |
The only dominant strategy in this game is for------ to choose -------- .
The outcome reflecting the unique Nash equilibrium in this game is as follows: Manuel chooses-------- and Poornima chooses --------- .
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