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Business, 11.04.2020 01:12 billydeck30
Suppose Tim and Alyssa 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 Tim chooses Right and Alyssa chooses Right, Tim will receive a payoff of 9 and Alyssa will receive a payoff of 5.
Alyssa
Left Right
Tim Left 6, 6 8, 5
Right 3, 6 9, 5
The only dominant strategy in this game is for to choose .
The outcome reflecting the unique Nash equilibrium in this game is as follows: Tim chooses and Alyssa chooses
Alyssa
Left Right
6,6 8,5
3,6 9,5
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