Please look at the payoff matrix below which shows the benefits that would accru

Question

Please look at the payoff matrix below which shows the benefits that would accrue to each player in a 2-player, non-sequential, non-repeated game. (Each player is aware of this matrix.) a.Suppose that collusion is allowed in the game.Identify the collusive equilibrium. b.Suppose that collusion is not allowed in the game.Identify the maximin equilibrium c.Suppose that collusion is not allowed in the game.Identify the maximax equilibrium d.Suppose that collusion is not allowed in the game.Identify all Nash equilibrium (or, if none exist, state that none exist).

Explanation / Answer

a) collusive equilibrium would be (70,80) as it jointly maximizws payoffs

b) when collusion not allowed equilibrium would be (30,40)

c) no nash equilibrium exists

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