2 Problem 1. Consider the following strategic game:AВC Dx 10,106,84,5 10,1y7,462,10 4,5 10,38,68,68,5 10,4a) Find all pure strategies dominated by a pure strategy.b) Find all pure strategies dominated by a mixed strategy.c) Find all pure NE.d) Find all mixed NE.

A Nash equilibrium is a concept used to investigate the behavior of participants in a strategic…

Answered: pure NE.

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Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.1P

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Question

Problem 1. Consider the following strategic game:
A
В
C D
x 10,10
6,8
4,5 10,1
y
7,4
62,10 4,5 10,3
8,6
8,6
8,5 10,4
a) Find all pure strategies dominated by a pure strategy.
b) Find all pure strategies dominated by a mixed strategy.
c) Find all pure NE.
d) Find all mixed NE.

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Step 1: Define Nash equilibrium

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Step 2: Explain all the pure strategies dominated by a pure strategy.

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Step 3: Explain all the pure strategies dominated by a mixed strategy.

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Step 4: Explain the all pure Nash equilibrium.

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Step 5: Explain the all pure Nash equilibrium.

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