Quiz 7_Solutions

# Quiz 7_Solutions - Finance 30210 Quiz#7 Name Section 1...

• Notes
• palmera
• 1

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

Finance 30210 Quiz #7 Name__________________________ Section_________ 1) Consider the following game (Player one’s payoffs are in bold): Player Two Cooperate Cheat Player One Cooperate \$17 \$17 \$0 \$20 Cheat \$10 \$0 \$15 \$15 a) What is each player’s optimal strategy? Does either player have a dominant strategy? Explain.
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Player 1: If player 2 cooperates, cooperate. If Player 2 cheats, cheat Player 2: Always cheat Player 2 has a dominant strategy in that his best move is to always cheat regardless of what player 1 is doing. b) What is the Nash equilibrium for this game? The Nash equilibrium is for both sides to cheat....
View Full Document

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern