Mathematics, 04.06.2020 13:24 natalieagustinlop54
Consider in a soccer game, two athletes are locked in a stare down. The referee cannot monitor the interaction closely. The best overall outcome is that neither athlete flops and plays fairly (2 to each). But athlete might tempt to bend the rules. If exactly one athlete flops, the referee hands out a red card to the other athlete (-2) for a perceived infraction and the flopper gets an edge (+1). But if the two athletes both flop, then the referee will notice that they pretend the flop, and each will get a yellow card (-1) [The first number in each cell is the Athlete 1's payoff, and the second number is the Athlete 2's payoff Athlete 2 Flop Not flopAthlete 1 Flop 1,-1 1,-2 Not Flop -2,1 2,2a. What is the best response of the Athlete 1 when the Athlete 2 chooses to flop? b. What is the best response of the Athlete 1 when the Athlete 2 chooses not to flop? c. Does any player have a dominant strategy? Explain. d. Are there pure strategy Nash equilibria? If yes, what are they? Explain
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