b. You and your friend are gambling and each of you have two balls: yellow and blue. If the colour of the ball picked by you is the same as your friend's, you win. If the colour of the balls draw from you and your friend are different, your friend wins. Winning with a yellow ball earns a payoff of $100, while winning with a blue ball earns a payoff of $80. i. What is(are) the Nash equilibrium (equilibria), if any, under pure strategies in the above simultaneous game? i. What is the Nash equilibrium under mixed strategy? iii. What is the expected payoff for you and your friend under the mixed strategy in (ii.)?

b. You and your friend are gambling and each of you have two balls: yellow and blue. If the colour of the ball picked by you is the same as your friend's, you win. If the colour of the balls draw from you and your friend are different, your friend wins. Winning with a yellow ball earns a payoff of $100, while winning with a blue ball earns a payoff of $80. i. What is(are) the Nash equilibrium (equilibria), if any, under pure strategies in the above simultaneous game? i. What is the Nash equilibrium under mixed strategy? iii. What is the expected payoff for you and your friend under the mixed strategy in (ii.)?

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter13: Between Competition And Monopoly

Section: Chapter Questions

Problem 10DQ

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