Refer to Figure a. Charlie and Joe both want to ride shotgun with their mother, so they play a game of rock-paper-scissors to determine who gets to sit in the front seat. In the table, -1 represents a loss, 1 a win and 0 a tie, and Joe's payoff is shown in the upper left-hand corner of each cell, while Charlie's appears in the lower right-hand corner. What is the Nash equilibrium?
A. Charlie chooses rock, Joe chooses rock
B. Charlie chooses rock, Joe chooses paper
C. Charlie chooses paper, Joe chooses scissors
D. There is no Nash equilibrium.
D. There is no Nash equilibrium.
You might also like to view...
Which is an example of restrictive fiscal policy?
A) An increase in the discount rate B) An increase in the federal funds rate C) An increase in reserve requirements D) A lowering of tax rates E) A lowering of government spending
What is a stock? How do stocks affect the economy?
What will be an ideal response?
The prices at which goods trade are determined by their costs of production
Indicate whether the statement is true or false
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.