In the payoff matrix above the Nash equilibrium for the game is
A)for both players to follow strategy A
B)for both players to follow strategy B
C)for player 2 to follow strategy A and for player 2 to follow strategy B
D)there is no Nash equilibrium in this game

Question

Quizplus · Accepted Answer

The Nash equilibrium is the strategy combination that maximizes the payoff for each player, given the strategy of the other player. In this game, the Nash equilibrium is for both players to follow strategy A. This is because if player 1 follows strategy A, then player 2 will get a payoff of 2 if they follow strategy A and a payoff of 1 if they follow strategy B. Therefore, player 2 will always follow strategy A. Similarly, if player 2 follows strategy A, then player 1 will get a payoff of 3 if they follow strategy A and a payoff of 2 if they follow strategy B. Therefore, player 1 will always follow strategy A.

In the Payoff Matrix Above the Nash Equilibrium for the Game