1. Bob and Alice have strategies "Run" and "Stop" in a game. If both of them run, they both get the payoff 1. If Bob runs and Alice stops then the payoffs are -1 and -3 respectively. But if Bob stops and Alice runs, the payoffs are 2 and -1 respectively. If both Bod and Anna stop then the payoffs are 2 and 3 respectively. a) Construct the normal form of the game. b) Determine if there is a dominant strategy in the given normal form of a game.

1. Bob and Alice have strategies "Run" and "Stop" in a game. If both of them run, they both get the payoff 1. If Bob runs and Alice stops then the payoffs are -1 and -3 respectively. But if Bob stops and Alice runs, the payoffs are 2 and -1 respectively. If both Bod and Anna stop then the payoffs are 2 and 3 respectively. a) Construct the normal form of the game. b) Determine if there is a dominant strategy in the given normal form of a game.

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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