Economic Analysis of Social Issues 1st Edition by Alan Grant

Exercise 3

Use the payoff matrix that accompanies questions 1 and 2 to answer question. A Nash equilibrium can be found where Hugo plays _______, Larry plays _______, and Serena plays ______.
A) Top; up; right
B) Left; top; down
C) Bottom; down; right
D) There is a Nash equilibrium in this game, but it is not listed in a-c.
Questions 1:
Refer to the following payoff matrixes to answer question
Hugo's available strategies include ________.
A) Top and bottom
B) Left and right
C) Up and down
D) None of the above

questions 2:
Refer to the following payoff matrixes to answer question
Suppose Hugo chooses top, while Larry chooses down, and Serena chooses left. Then Hugo will receive a payoff of ________
A) 7
B) 3
C) 2
D) Some other number