Question

Suppose Jake and Latasha are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Jake chooses Right and Latasha chooses Right, Jake will receive a payoff of 6 and Latasha will receive a payoff of 5.

Latasha
left Right;
left 6,6 6,3
Jack Right 4,3 5,5
The only dominant strategy in this game is for ______ to choose ________. The outcome reflecting the unique Nash equilibrium in this game is as follows: Jake chooses _______ and Latasha chooses ________.

Answer 1

The only dominant strategy in this game is for Jake to choose right.

Nash equilibrium in this game is when Jake chooses right and Latasha chooses Left.

Step-by-step explanation:

Nash equilibrium is a situation where both players can gain some of the advantage when one player forgoes some of his advantage. This strategy is chosen when there is competitive benefits available in the payoff matrix. In the given scenario Jack can gain from the game when he chooses right but Nash equilibrium will be achieved when Jack choose right and Latasha chooses left.