HW5+6Ans - 3. (EAA, T), (ETA, T) : (-3,1) 4. (EAT, T),...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
HW 5/6 Selected Ans: Q1) Strategies: Pepsi : Accommodate, Tough Coke: [EAA, EAT, ETA, ETT, NAA, NAT, NTA, NTT] Normal Form : Construct an eight by two matrix and fill in the payoffs as follows. 1. (EAA, A) , (EAT, A) : (1,2) 2. (ETA, A), (ETT, A) : (0, -3)
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 3. (EAA, T), (ETA, T) : (-3,1) 4. (EAT, T), (ETT, T) : (-2, -1) 5. All the rest corresponding to Cokes not enter yield the payoff (0,5). Nash equilibria: (EAA, A), (EAT, A), (NAA, T), (NAT, T), (NTA, T), (NTT, T) BI solution: (EAT, A)...
View Full Document

This note was uploaded on 11/27/2010 for the course ECON Econ 116A taught by Professor Neerjaaggarwal during the Winter '10 term at UC Irvine.

Ask a homework question - tutors are online