QUESTION Player lI Player A 63 26 B 43 81 Suppose that in th

QUESTION Player lI Player A 6,3 2,6 B 4,3 8,1 Suppose that in the game above Player 2 plays strategy C with probability q=0.3. The value for1(A, q) is: a.8.3 b.3.2 c. 4.6 d 3.9

Solution

Player 2 plays strategy C with probability ,q=0.3 . It implies that player 2 plays strategy D with probability (1-q) i.e = 0.7.

EU1(A,q) = q(6) + (1-q) (2)

= (0.3)(6) + (0.7) (2)

= 1.8 + 1.4

= 3.2.

Hence, option (b) is correct.