Answer to Question #260610 in Macroeconomics for Fidza

Question

(a) Find the Nash Equilibrium for the following strategy

 Column

   Row Up Down

(b) Consider the following game matrix

Left 2, 4 6, 5

Right 1, 0 4, 2

Right

c, d g, h

        PLAYER A

Top Bottom

PLAYER B

Left

a, b e, f

    If (top, left) is a Nash equilibrium, then which of the above inequalities must be satisfied

Answer 1

If he choose the other alternatives he'll get lower returns that's why the nash is 2,4

For nash to hold, a must be greater than b, b greater than c and c greater than d