# Use the following payoff matrix for a simultaneous-move one-

Use the following payoff matrix for a simultaneous-move one-shot game to answer the accompanying questions.

Player 2

Strategy C D E F

Player 1 A 25, 15 4, 20 16, 14 28, 12

B 10, 10 5, 15 8, 6 18, 13

a. What is player 1's optimal strategy? Why?

b. Determine player 1's equilibrium payoff.

Consider a two-player, sequential-move game where each player can choose to play right or left. Player 1 moves first. Player 2 observes player 1's actual move and then decides to move right or left. If player 1 moves right, player 1 receives $0 and player 2 receives $15. If both players move left, player 1 receives - $10 and player 2 receives $8. If player 1 moves left and player 2 moves right, player 1 receives 10 and player 2 receives $10.

a. Write the above game in extensive form.

b. Find the ash equilibrium outcomes to this game.

c. Which of the equilibrium outcomes is most reasonable? Explain.

https://brainmass.com/economics/game-theory/use-the-following-payoff-matrix-for-a-simultaneous-move-one-401236

#### Solution Preview

Use the following payoff matrix for a simultaneous-move one-shot game to answer the accompanying questions.

Player 2

Strategy C D E F

Player 1 A 25, 15 4, 20 16, 14 28, 12

B 10, 10 5, 15 8, 6 18, 13

a. What is player 1's optimal strategy? ...

#### Solution Summary

Use the following payoff matrix for a simultaneous-move one-shot game to answer the accompanying questions.

Player 2

Strategy C D E F

Player 1 A 25, 15 4, 20 16, 14 28, 12

B 10, 10 5, 15 8, 6 18, 13

a. What is player 1's optimal strategy? Why?

b. Determine player 1's equilibrium payoff.

Consider a two-player, sequential-move game where each player can choose to play right or left. Player 1 moves first. Player 2 observes player 1's actual move and then decides to move right or left. If player 1 moves right, player 1 receives $0 and player 2 receives $15. If both players move left, player 1 receives - $10 and player 2 receives $8. If player 1 moves left and player 2 moves right, player 1 receives 10 and player 2 receives $10.

a. Write the above game in extensive form.

b. Find the ash equilibrium outcomes to this game.

c. Which of the equilibrium outcomes is most reasonable? Explain.