Economic and Game Theory
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"Inside every small problem is a large problem struggling to get out." | |||||
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Each player has three possible strategies: - to claim 1 - to claim between 1 and 3 (1 and 3 excluded) - to claim 3 Now, the payoff matrix is as follows: (Legend: x1 = claim of player 1 x2 = claim of player 2 ) 1 (1,3) 3 1 1/1 1/x2 (if x2 <= 2) 1/0 1/0 (if x2 > 2) (1,3) x1/1 (if x1 <= 2) x1/x2 (if x1+x2 <= 3) 0/0 0/1 (if x1 > 2) 0/0 (if x1+x2 > 3) 3 0/1 0/0 0/0 How would you solve this game? How would you find the nash equilibria? [Manage messages] |