George and Henry sell wool sweaters during the winter in front of the student un
ID: 1110993 • Letter: G
Question
George and Henry sell wool sweaters during the winter in front of the student union of a remote college in upstate Minnesota. Because their sweaters are similar, they have developed the following tactics to increase their sales. Payoffs are (percentage of sales to George, percentage of sales to Henry). [The first number corresponds to George’s payoff and the second number corresponds to Henry’s payoff.] (a) Does George have a dominant strategy? (b) Does Henry have a dominant strategy? (c) Solve for the pure strategy Nash equilibrium, if it exists. Henrys Decision Shout Insults Post a Give Away Big Sign Free Balloons Shout Insults 50,50 55,45 60,40 Georges Post a 40,60 45,55 50,50 Decision Big Sign Give Away 40,60 45,55 50,50 Free Balloons
Explanation / Answer
George and Henry sell wool sweaters during the winter in front of the student union of a remote college in update Minnesota.Because their sweaters are similar , they have developed the following tactics to increase their sales.
According to the question : this the henry's and george actions matrix table:
[The first number corresponds to George's payoff and the second number corresponds to Henry's payoff]
(a) Yes, George has a dominant strategy for 'shout insults'. Because given the henry's pay-off for each strategy George has the large pay-off for playing 'shout insults'.
(b) Yes,Henry has a dominant strategy for 'shout insults'. Because given the George's pay-off for each strategy Henry has the large pay-off for playing 'shout insults'.
(c)Yes , Pure strategy nash equilibrium exists for this game. Because each player has the dominant strategy in 'shout insults' . So, the pure strategy nash equilibrium is "SHOUT INSULTS".
HENRY'S ACTION Shout insults Post a big sign Give away balloons GEORGE'S Shout insults (50,50) (60,40) (55,45) ACTION Post a big sign (40,60) (50,50) (45,55) Give away balloons (40,60) (45,55) (50,50)Related Questions
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