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Unformatted text preview: sanctions. Each wants sanctions, but also oil: its payoff if 4 if sanctions are imposed but it didn’t vote for them; 3 if sanctions are imposed and it voted for them; 2 if sanctions are not imposed and it didn’t vote for them; and 1 if sanctions are not imposed but it voted for them. (a) If all countries vote for sanctions, does this form a Nash equilibrium? What payoffs to the countries get? (b) If no country votes for sanctions, does this form a Nash equilibrium? What payoffs do the countries get? (c) State a pure-strategy equilibrium that yields a (strongly) Pareto-efficient outcome. Question 4 : Textbook Section 17.8, Exercise 10....
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This note was uploaded on 02/06/2011 for the course ORIE 4350 at Cornell.