-Refer to Figure 16.1, which represents a static game in extensive format. The Nash equilibrium strategy profile for this game is:
A) {Up, Up}.
B) {Down, Down}.
C) {Up, Down}.
D) {Down, Up}.

Question

-Refer to Figure 16.1, which represents a static game in extensive format. The Nash equilibrium strategy profile for this game is:
A) {Up, Up}. 
B) {Down, Down}. 
C) {Up, Down}. 
D) {Down, Up}.

Quizplus · Accepted Answer

The Nash equilibrium strategy profile is {Up, Up} because neither player can improve their payoff by unilaterally changing their strategy.