Homework SourseIn the game matrix below the first payoff in each pair goes
In the game matrix below, the first payoff in each pair goes to player A who chooses the row, and the second payoff goes to player B, who chooses the column.
Let a, b, c, and d be positive constants. If player A chooses Bottom and player B chooses Right in a Nash equilibrium, then we know that:
a. b > 1 and d < 1.
b. c < 1 and b < 1.
c. b < 1 and c < d.
Please explain
| Player B | |||
| Player A | Left | Right | |
| Top | a,1 | b,1 | |
| Bottom | 1,c | 1,d |
Solution
c. b < 1 and c < d.
Because The rule goes as follows: if the first payoff number, in the payoff pair of the cell, is the maximum of the column of the cell and if the second number is the maximum of the row of the cell - then the cell represents a Nash equilibrium.
