Scenario: Two friends are playing a game. The rules of the game are simple. Each player is given a bag containing a white ball and a black ball, and the two friends are asked to simultaneously draw one ball each. They are informed about their payoffs just before the game begins, which are shown in the matrix below. 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.

-Refer to the scenario above.Which of the following is true in this case?
A) There will be a Nash equilibrium if both players draw white balls.
B) There will be a Nash equilibrium if Player 1 draws a black ball and Player 2 draws a white ball.
C) There are three Nash equilibria in this game.
D) There will be a Nash equilibrium if Player 2 draws a black ball and Player 1 draws a black ball.

Question

Scenario: Two friends are playing a game. The rules of the game are simple. Each player is given a bag containing a white ball and a black ball, and the two friends are asked to simultaneously draw one ball each. They are informed about their payoffs just before the game begins, which are shown in the matrix below. 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.
 
-Refer to the scenario above.Which of the following is true in this case?
A) There will be a Nash equilibrium if both players draw white balls. 
B) There will be a Nash equilibrium if Player 1 draws a black ball and Player 2 draws a white ball. 
C) There are three Nash equilibria in this game. 
D) There will be a Nash equilibrium if Player 2 draws a black ball and Player 1 draws a black ball.

Quizplus · Accepted Answer

There are three Nash equilibria in this game: (black, white), (white, black), and (white, white).

Scenario: Two Friends Are Playing a Game