question archive Which of the following statement is correct? Note: The choices are about Nash equilibrium in Game Theory
Subject:EconomicsPrice: Bought3
Which of the following statement is correct? Note: The choices are about Nash equilibrium in Game Theory. Multiple correct, multiple selections. A. A game has two players, and each has two strategies. The strategies are Be Nice and Be Mean. If both players play Be Nice, both get a payoff of 5. If both players play, Be Mean, both get a payoff of 23. If one player plays Be Nice and the other plays Be Mean, the player who played Be Nice gets 0, and the player who played Be Mean gets 10. Playing Be Mean is a dominant strategy for both players. O B. Frank and Nancy met at a sorority sock hop. They agreed to meet for a date at a local bar the next week. Regrettably, they were so fraught with a passion that they forgot to agree on which bar would be the site of their rendezvous. Luckily, the town has only two bars, Rizotti's and the Oasis. Having discussed their tastes in bars at the sock hop, both are aware that Frank prefers Rizotti's to the Oasis and Nancy prefers the Oasis to Rizotti's. In fact, the payoffs are as follows. If both go to the Oasis, Nancy's utility is 3 and Frank's utility is 2. If both go to Rizotti's, Frank's utility is 3 and Nancy's utility is 2. If they don't both go to the same bar, both have a utility of 0. This game has three Nash equilibria. C. In Nash equilibrium, each player is making an optimal choice for herself, given the choices of the other players. )D. In the prisoner's dilemma game, if each prisoner believed that the other prisoner would deny the crime, then both would deny the crime. A game has two players. Each player has two possible strategies. One strategy is Cooperate, the other is Defect. Each player writes on a piece of paper either a C for cooperate or a D for defect. If both players write C, they each get a payoff of $100. If both players write D, they each get a payoff of 0. If one player writes C and the other player writes D, the cooperating player gets a payoff of S and the defecting player gets a payoff of T. To defect will be a dominant strategy for both players if T>S