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Table 12.9
-(Table 12.9) Payoffs represent profits in thousands of dollars. In this game, the Nash equilibria are:
A) (210 , 250) and (180 , 180).
B) (50 , 50) and (20 , 20).
C) (210 , 250) and (50, 50).
D) (20 , 20), (50, 50), and (180 , 180).

Question

Use the following to answer question:
Table 12.9 
-(Table 12.9) Payoffs represent profits in thousands of dollars. In this game, the Nash equilibria are:
A) (210 , 250) and (180 , 180). 
B) (50 , 50) and (20 , 20). 
C) (210 , 250) and (50, 50). 
D) (20 , 20), (50, 50), and (180 , 180).

Quizplus · Accepted Answer

The Nash equilibria are (210 , 250) and (180 , 180). In a Nash equilibrium, neither player can improve their payoff by unilaterally changing their strategy. In this game, if Player 1 chooses "High" and Player 2 chooses "Low", Player 1's payoff is 210 and Player 2's payoff is 250. If Player 1 chooses "Low" and Player 2 chooses "High", Player 1's payoff is 180 and Player 2's payoff is 180. If either player deviates from these strategies, their payoff will decrease.

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