game theory

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AJ
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game theory

AJ


I wasn't able to understand the question...
Can someone explain the first payoff matrix. .... here only 1 player but payoff of both of them..

and in second who's row player and who's column player..

????
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Re: game theory

Chocolate Frog
In the first game, the ideal strategy for the row player is to not enter, in which case it ends up with a payoff of 0 and the column player gets a payoff of 6.

In the second game, (enter, dove) is a pure strategy Nash equilibrium. The row player is better off with a payoff of 3 (as opposed to 0 in game 1) while the column player is worse off with a payoff of 3 (as opposed to 6 in game 1). Therefore, expansion of the game in terms of strategic options leaves one player better off at the expense of the other. Hence, (d).
AJ
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Re: game theory

AJ
Thankyou! :)