b. The Dutch auction has a dominant strategy of: bid = true value.
| | Cooperate | Defect | | --- | --- | --- | | Cooperate | 3, 3 | 0, 4 | | Defect | 4, 0 | 1, 1 |
| | Agree | Disagree | | --- | --- | --- | | Offer (4, 6) | 4, 6 | 0, 0 | | Offer (3, 7) | 3, 7 | 0, 0 | Games Of Strategy 5th Edition Solutions Pdf
b. The subgame perfect Nash equilibrium is (Enter, Accommodate).
1.1. a. The best outcome for both players is (A, A), which gives a payoff of 3 to each player. The subgame perfect Nash equilibrium is (Enter, Accommodate)
c. The Nash equilibrium is (Defect, Defect).
c. The Nash equilibrium is (Cooperate, Cooperate). The best outcome for both players is (A,
2.2. a. The payoff matrix is: