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Business, 04.04.2020 02:04 gehdmoe2

Indicate whether a statement below is true or false. If false, give an example where the statement does not hold. [Hint: read carefully the slides of Lecture 3 and 4.] (i) A Nash equilibrium maximizes the sum of utilities of the players in every game. (ii) If players are rational and each knows others are rational, a Nash equilibrium will be played. Remember being rational implies a player will never choose a strictly dominated strategy and knowing other players are rational means each player knows others will never choose a strictly dominated strategy. (iii) A Nash equilibrium strategy cannot be weakly dominated. (iv) A Nash equilibrium strategy cannot be strictly dominated. (v) A game can have more than one Nash equilibrium

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