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Solving for dominant strategies and the Nash equilibrium Suppose Gilberto and Juanita are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Gilberto chooses Right and Juanita chooses Right, Gilberto will receive a payoff of 3, and Juanita will receive a payoff of 7.
Juanita
Left Right
Gilberto
Left 4, 6 6, 8
Right 7, 5 3, 7
The only dominant strategy in this game is for to choose . The outcome reflecting the unique Nash equilibrium in this game is as follows: Gilberto chooses and Juanita chooses .
Answers: 1
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Solving for dominant strategies and the Nash equilibrium Suppose Gilberto and Juanita are playing a...
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