Please indicate explanations for all answers 5. Solving for dominant strategies

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Please indicate explanations for all answers

5. Solving for dominant strategies and the Nash equilibrium Suppose Alex and Becky 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 Alex chooses Right and Becky chooses Right, Alex will receive a payoff of 9 and Becky will receive a payoff of 8. Becky Left Right Left 8,5 8,7 Right 3,6 9,8 The only dominant strategy in this game is for to choose The outcome reflecting the unique Nash equilibrium in this game is as follows: Alex chooses and Becky chooses

Explanation / Answer

Reason : Best response of Alex if Becky chooses Left is Right

Best response of Alex if Becky chooses Right is Right. Since Alex is choosing right no matter what Becky chooses So, Right is the dominant strategy.

2.Nash is Alex chooses right and Becky chooses right.

Reason: because this is the mutual best response.

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