Multiple Choice
s
-Consider Figure 13.1, which represents an optimistic state of nature and Figure 13.2, which represents a pessimistic state of nature. Suppose that there is a 10 percent probability of an optimistic state of nature and a 90 percent probability of a pessimistic state of nature. The Nash equilibrium strategy profile for this game is:
A) {A1, B1}.
B) {A2, B2}.
C) {A3, B3}.
D) This game does not have a Nash equilibrium.
E) This game has multiple Nash equilibria.
Correct Answer:
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