For the game below,what is the equilibrium (or equilibria)for A1 and A2?

A)C,C
B)D,D
C)C,D and D,C
D)C,C; D,D; and C,D

Question

For the game below,what is the equilibrium (or equilibria)for A1 and A2?

A)C,C 
B)D,D 
C)C,D and D,C 
D)C,C; D,D; and C,D

Quizplus · Accepted Answer

In this game, both players have two choices: C or D. However, if both players choose C, they both receive a payoff of 2, which is the highest possible payoff. Therefore, (C, C) is the only Nash equilibrium in this game. However, in the case that one player chooses C and the other chooses D, the player who chooses D receives a higher payoff than if they both choose C. Therefore, (C, D) and (D, C) are not Nash equilibria. Option D includes all of the equilibria, but the question only asks for the equilibrium for player A1 and A2 and not all of the possible equilibria. Therefore, the best choice is option C.

For the Game Below,what Is the Equilibrium (Or Equilibria)for A1