Answered

Discover answers to your most pressing questions at Westonci.ca, the ultimate Q&A platform that connects you with expert solutions. Get expert answers to your questions quickly and accurately from our dedicated community of professionals. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

Solving for dominant strategies and the Nash equilibrium
*Fill in the blanks please :) *
Suppose Paolo and Sharon 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 Paolo chooses Right and Sharon chooses Right, Paolo will receive a payoff of 5 and Sharon will receive a payoff of 4.
The only dominant strategy in this game is for _________ to choose __________.
The outcome reflecting the unique Nash equilibrium in this game is as follows: Paolo chooses __________ and Sharon chooses _______.

Sagot :

anthougo

Question Completion:

Matrix payoff:

                                              Sharon

                                  Left              Right

Paolo     Left              8,  3             4,   4

              Right           5,  3             5,   4

Answer:

The only dominant strategy in this game is for ___Paolo______ to choose ____Right______.

The outcome reflecting the unique Nash equilibrium in this game is as follows: Paolo chooses ____Right______ and Sharon chooses __ Right_____.

Explanation:

a) Paolo's dominant strategy is the strategy that always provides the greater utility to Paolo, no matter what Sharon's strategy is.  In this case, the dominant strategy for Paolo is to choose RIGHT always.

b) The Nash Equilibrium concept determines the optimal solution in a non-cooperative game in which each player (e.g. Paolo and Sharon) lacks any incentive to change their initial strategies. This implies that each player can achieve their desired outcomes by not deviating from their initial strategies since each player's strategy is optimal when considering the decisions of the other player.

We hope this information was helpful. Feel free to return anytime for more answers to your questions and concerns. Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. Thank you for visiting Westonci.ca. Stay informed by coming back for more detailed answers.