Table: Jim, Dan Payoff Table $$\begin{array} { | l | l | l r | r }
\hline & { } & { \text { Dan } } & \
\hline & & \text { Good A } & \text { Good B } \
\hline \text { Jim } & \text { Good A } & & ( 12,12 ) & ( 4,4 \
\hline & \text { Good B } & & ( 3,3 ) & ( 8,8 \
\hline
\end{array}$$ Refer to the table. Which of the following outcomes is NOT a Nash equilibrium?
I. (12, 12)
II. (4, 4)
III. (8, 8)
IV. (3, 3)
A) I and IV only
B) II and IV only
C) III only
D) I and III only

Question

Table: Jim, Dan Payoff Table $$\begin{array} { | l | l | l r | r } 
\hline & { } &  { \text { Dan } } &  \
\hline & & \text { Good A } & \text { Good B } \
\hline \text { Jim } & \text { Good A } & & ( 12,12 ) & ( 4,4 \
\hline & \text { Good B } & & ( 3,3 ) & ( 8,8 \
\hline
\end{array}$$ Refer to the table. Which of the following outcomes is NOT a Nash equilibrium?
I. (12, 12)
II. (4, 4)
III. (8, 8)
IV. (3, 3)
A) I and IV only
B) II and IV only
C) III only
D) I and III only

Quizplus · Accepted Answer

(4, 4) and (3, 3) are not Nash equilibria because in both cases, players can improve their payoff by unilaterally changing their strategy.

Table: Jim, Dan Payoff Table Refer to the Table