Refer to the game. Which of the following pairs of strategies constitute a Nash equilibrium of the game?
A) S1, t1
B) S1, t2
C) S2, t1
D) S1, t2 and S2, t1

Question

Refer to the game.  Which of the following pairs of strategies constitute a Nash equilibrium of the game?
A) S1, t1 
B) S1, t2 
C) S2, t1 
D) S1, t2 and S2, t1

Quizplus · Accepted Answer

In a Nash equilibrium, no player can improve their payoff by changing their strategy, given the other player's strategy. 
If player 1 plays S1, player 2's best response is t2 as it gives a higher payoff of 3 compared to 2. Alternatively, if player 1 plays S2, player 2's best response is t1 as it gives a higher payoff of 2 compared to 1. Therefore, the strategy combination of S1, t2 and S2, t1 constitutes a Nash equilibrium.

Refer to the Game