Economic Analysis of Social Issues 1st Edition by Alan Grant

تمرين 12

Game N is a game of pure coordination:
Game N.

For this game, do the following:
a. Find the Nash equilibria in the game. There are two.
b. Indicate whether either player has a preference as to which equilibrium he or she ends up at. Explain.
c. Ifyou indicated that players had preferences about which equilibrium they ended up at, then indicate whether those preferences agree.
d. Change the payouts in one cell to turn it into a game of assurance.