Consider a simultaneous game for two players. Each player has a choice between two strategies, Friend and Foe. If both players play Friend, each wins $1,000. If both play Foe, they win nothing. If one plays Foe and the other plays Friend, the Foe wins $2,000 and the Friend wins nothing. Which of the following statements is (are) TRUE?
I. This game has a mixed-strategy equilibrium.
II. This game has a pure-strategy equilibrium.
III. The Nash equilibrium is for both players to play Friend.
A) I and II
B) I, II, and III
C) II and III
D) II

Question

Quizplus · Accepted Answer

The game has a pure-strategy Nash equilibrium where both players play Foe, as neither player can benefit by unilaterally changing their strategy.

Consider a Simultaneous Game for Two Players