29 The payoff matrix below shows the payoffs for Firm A and Firm B, each of whom can either "cooperate" or "cheat". The numbers in parentheses are (payoff for A, payoff for B). $$\begin{array}{l}
\begin{array} { | l | l | l | l | }
\hline & & \text { Firm B } & \
\hline & & \text { Cooperate } & \text { Cheat } \
\hline \text { Firm A } & \text { Cooperate } & ( 30,30 ) & ( 10 , x ) \
\hline & \text { Cheat } & ( x , 10 ) & ( 20,20 ) \
\hline
\end{array}\
\text { TABLE 11- } 2
\end{array}$$
-Refer to Table 11- 2. If x = 40, what is the Nash equilibrium in this game?

Question

29 The payoff matrix below shows the payoffs for Firm A and Firm B, each of whom can either "cooperate" or "cheat". The numbers in parentheses are (payoff for A, payoff for B). $$\begin{array}{l}
\begin{array} { | l | l | l | l | } 
\hline & & \text { Firm B } & \
\hline & & \text { Cooperate } & \text { Cheat } \
\hline \text { Firm A } & \text { Cooperate } & ( 30,30 ) & ( 10 , x ) \
\hline & \text { Cheat } & ( x , 10 ) & ( 20,20 ) \
\hline
\end{array}\
\text { TABLE 11- } 2
\end{array}$$
-Refer to Table 11- 2. If x = 40, what is the Nash equilibrium in this game?

Quizplus · Accepted Answer

The Nash equilibrium is (Firm A: cheat, Firm B: cheat) because this is the only outcome where neither firm can improve its payoff by changing its strategy.

29 the Payoff Matrix Below Shows the Payoffs for Firm