A road that runs by your house has been damaged by a thunderstorm.The local authority will repair the road if at least one person lodges a complaint.There are only two houses on the road,yours and your neighbor's.The matrix below shows your payoffs depending on who decides to lodge a complaint.The first number listed in each cell is the payoff to the row player,and the second number listed is the payoff to the column player.

a)Does this game have a Nash equilibrium? Explain your answer.
b)Does this game have a dominant strategy equilibrium? Explain your answer.

Question

A road that runs by your house has been damaged by a thunderstorm.The local authority will repair the road if at least one person lodges a complaint.There are only two houses on the road,yours and your neighbor's.The matrix below shows your payoffs depending on who decides to lodge a complaint.The first number listed in each cell is the payoff to the row player,and the second number listed is the payoff to the column player.
  
a)Does this game have a Nash equilibrium? Explain your answer.
b)Does this game have a dominant strategy equilibrium? Explain your answer.

Quizplus · Accepted Answer

The Answer of A road that runs by your house has been damaged by a thunderstorm.The local authority will repair the road if at least one person lodges a complaint.There are only two houses on the road,yours and your neighbor's.The matrix below shows your payoffs depending on who decides to lodge a complaint.The first number listed in each cell is the payoff to the row player,and the second number listed is the payoff to the column player.
  
a)Does this game have a Nash equilibrium? Explain your answer.
b)Does this game have a dominant strategy equilibrium? Explain your answer.

A Road That Runs by Your House Has Been Damaged