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Business, 30.05.2020 23:02, jazzzzhands21
Suppose Raphael and Susan are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Raphael chooses Right and Susan chooses Right, Raphael will receive a payoff of 3 and Susan will receive a payoff of 7.
Susan
Left Right
Raphael Left 4, 6 6, 8
Right 7, 5 3, 7
The only dominant strategy in this game is for to choose . The outcome reflecting the unique Nash equilibrium in this game is as follows: Raphael chooses and Susan chooses
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