Table 16-12

-Refer to Table 16-12.This table shows a game played between two players,A and B.The payoffs in the table are shown as (Payoff to A,Payoff to B).Which of the following outcomes represents a Nash equilibrium in the game?

Question

Table 16-12
 
-Refer to Table 16-12.This table shows a game played between two players,A and B.The payoffs in the table are shown as (Payoff to A,Payoff to B).Which of the following outcomes represents a Nash equilibrium in the game?

Quizplus · Accepted Answer

Middle-Right is a Nash equilibrium because neither player has an incentive to deviate from this strategy. If player A switches to Up-Right, they will receive a payoff of (1,-1) instead of (2,2), and if player B switches to Down-Right, they will receive a payoff of (-1,1) instead of (2,2). Therefore, both players are best off sticking with their current strategy. In contrast, choices A, C, and D are not Nash equilibria because one or both players have an incentive to switch to a different strategy.

Table 16-12 -Refer to Table 16-12.This Table Shows a Game Played Between