Subject:EconomicsPrice: Bought3

7. Solving for dominant strategies and the Nash equilibrium Suppose Jake and Latasha 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 Jake chooses Right and Latasha chooses Right, Jake will receive a payoff of 5 and Latasha will receive a payoff of 1. Latasha Left Right Left 4,4 6,7 Jake Right 2,4 5,1 The only dominant strategy in this game is for to choose The outcome reflecting the unique Nash equilibrium in this game is as follows: Jake chooses and Latasha chooses