Self-test on dominant strategies, dominated strategies, and Nash equilibrium

GAME 5

                                         Column
                                    Left           Right      Edge
                    Up             -10,0         -10,-1        -10,-1

Row                 Down           -8,-8         0,-10        2,-1           
                                                                                        
                    Bottom          4, 5         7,-10         1, 1

5_3 Select which of the following are Nash equilibria:
A. Up, Left
B. Up, Right
C. Down, Left
D. Down, Right
E. Bottom, Left
F. Bottom, Right
G. Down, Edge
H. Bottom, Edge
I. Up, Edge
J. None of the above

E. CORRECT. Row would drop from 4 to -10 or -8 from deviating. Column would drop from 5 to -10 or 1.

Look out for more equilibria, though! There are actually two Nash equilibria for this game.

Return to Self Test 1.

Send comments to Prof. Rasmusen. Last updated: October 30, 1996