Use the following table to answer the questions :
-What are the pure-strategy Nash equilibria of the following game?
A)Both play A.
B)Both play B.
C)Two equilibria: both play B in one and both play C in the other.
D)Two equilibria: 1 plays B and 2 plays A and vice versa.

Question

Use the following table to answer the questions : 
-What are the pure-strategy Nash equilibria of the following game? 
A)Both play A. 
B)Both play B. 
C)Two equilibria: both play B in one and both play C in the other. 
D)Two equilibria: 1 plays B and 2 plays A and vice versa.

Quizplus · Accepted Answer

In both scenarios where both players play B or both players play C, neither player has an incentive to switch since they are receiving the maximum payoff possible given the other player's strategy. Therefore, these are pure-strategy Nash equilibria. Playing A is dominated by playing B or C, so it is not a rational choice. Option D is not a pure-strategy Nash equilibrium because one player has an incentive to switch to the other strategy.

Use the Following Table to Answer the Questions