Suppose that you and a friend play a \'matching pennies\" game in which each of

Question

Suppose that you and a friend play a 'matching pennies" game in which each of you uncovers a penny If both pennies show heads or both show tails, you keep both. If one shows heads and the other shows tails, your friend eeps them. The payoff matrix is shown to the right. What, if any, is the pure-strategy Nash equilibrium to this game? O A. This game has no pure-strategy Nash equilibria. O B. The pure-strategy Nash equilibrium is for you randomly to choose heads with probability 0.5 and tails with Heads Tails probability 0.5 and for your friend randomly to choose heads with probability 0.5 and tails with probability 0.5. 0 cents cents C. The two pure-strategy Nash equilibria are for you to choose heads and your friend to choose tails and for Heads you to choose tails and for your friend to choose heads The pure-strategy Nash equilibrium is for both you and your friepd to choose heads The pure-strategy Nash equilibrium is for both you and your friend to choose tails 0 cents O D. O E. 0 cents Tails o cents 2 cents Click to select your answer.

Explanation / Answer

Answer:- The correct Answer is:-

This game has no pure strategy Nash equilibrium

Reason:- Both the players will select the strategy which gives a pay off of 20 and there is no cell where both the pays offs are 20, therefore, the matrix will not have nash equilibrium.

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