Use the following to answer question:
Table 12.11
-(Table 12.11) The payoffs represent dollars won or lost. Which of the following statements is TRUE?
A) The Nash equilibria are (1, -1) and (-1 , 1).
B) The dominant strategy for Player B is pick odd number.
C) In mixed strategy, the Nash equilibrium is for both players to randomly select their strategy with a 50% probability.
D) The pure-strategy equilibrium is (odd number, even number).

Question

Use the following to answer question:
Table 12.11 
-(Table 12.11) The payoffs represent dollars won or lost. Which of the following statements is TRUE?
A) The Nash equilibria are (1, -1) and (-1 , 1). 
B) The dominant strategy for Player B is pick odd number. 
C) In mixed strategy, the Nash equilibrium is for both players to randomly select their strategy with a 50% probability. 
D) The pure-strategy equilibrium is (odd number, even number).

Quizplus · Accepted Answer

In a mixed strategy Nash equilibrium, both players randomize their strategies with equal probabilities when there is no dominant strategy, leading to a 50% probability for each strategy.

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