Refer to the payoff matrix below. $\begin{array}{c}
\quad\quad\quad\quad\quad\quad\text { Player 2}\
\text { Player 1 }
\begin{array}{|l|l|l|l|}
\hline & \text { t1 } & \text { t2 } & \text { t3 } \
\hline & & & \
\mathrm{S} 1 & 20,0 & 15,1 & 5,-100 \
\hline & & & \
\mathrm{S} 2 & 20,200 & 10,0 & 5,-50\
\hline
\end{array}\end{array}$ Which of the following pairs of strategies constitutes a Nash equilibrium of the game?
A) S1, t1
B) S1, t2
C) S2, t1
D) S1, t2 and S2, t1

Question

Refer to the payoff matrix below. $\begin{array}{c}
\quad\quad\quad\quad\quad\quad\text { Player 2}\
\text { Player 1 }
\begin{array}{|l|l|l|l|} 
\hline & \text { t1 } & \text { t2 } & \text { t3 } \
\hline & & & \
\mathrm{S} 1 & 20,0 & 15,1 & 5,-100 \
\hline & & & \
\mathrm{S} 2 & 20,200 & 10,0 & 5,-50\
\hline
\end{array}\end{array}$ Which of the following pairs of strategies constitutes a Nash equilibrium of the game?
A) S1, t1
B) S1, t2
C) S2, t1
D) S1, t2 and S2, t1

Quizplus · Accepted Answer

A Nash equilibrium is a pair of strategies such that neither player has an incentive to unilaterally change their strategy. In this case, S1, t2 is a Nash equilibrium because if Player 1 switches to t1 or Player 2 switches to t3, then they will receive a lower payoff. Similarly, S2, t1 is a Nash equilibrium because if Player 1 switches to t2 or Player 2 switches to t2 or t3, then they will receive a lower payoff. Therefore, the only correct answer is D, which includes both Nash equilibria.

Refer to the Payoff Matrix Below Which of the Following Pairs of Strategies Constitutes a Nash