JHRiley.ECO550.Assign3

JHRiley.ECO550.Assign3 - drivers choose the same strategy,...

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Juanita Riley ECO 550 Assignment #3 Week 7 Professor Elkanah Faux August 10, 2011 ANSWER BOX Questions Answers Explanation 1.a Yes or No There is not a dominant strategy in this game. It is beneficial for both drivers to cooperate and coordinate among themselves to use the same strategy in order to achieve the best outcome, and accident free. 1.b Yes or No There are two Nash equilibriums (left, left) and (right, right) with payoff of (0, 0). Both players are aware of the other’s strategy. The two drivers have to decide whether to drive on the left or on the right side of the road and avoid any accidents. Nash equilibrium occurs when both
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Unformatted text preview: drivers choose the same strategy, either to drive on their own left side or both drive on their own right side of the road. 1c Yes or No This game is called cooperative game because the payoff is higher when the drivers work together by driving on the same side of the road. 2a. Choose the correct letter a)AJEO b)AJHB c)AJGC d)BHGC e)BHEO e)None of the above N/A 2b. Choose the correct letter a)BHEO b)AJEO c)JHKN d)BHGC e)HKGN e)None of the above N/A 2c. Choose the correct letter a)AJHB b)AGJC c)JHKN d)BHEO e)AJEO e)None of the above N/A 2d. Choose the correct letter a)OL b)OE c)OM d)EM e)None of the above N/A...
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JHRiley.ECO550.Assign3 - drivers choose the same strategy,...

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