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Question

Microeconomics Question on Game theory

In a 3-player game, player 1 can choose either Up or Down as strategies. Player 2 can chose either Left or Right as strategies. Player 3 can choose either Table 1 or Table 2 as strategies.
Player 2 Player 2 Left Right Left Right Player 1 Up 3, 2, 5 4, 1, 3 Player 1 Up 2, 3, 4 4, 5, 7 Down 2, 6, 1 5, 4, 6 Down 6, 4, 0 3, 3, 3 Table 1 Table 2 Player 3
Which of the following strategy profile(s) is/are Nash Equilibrium?

A

(Up, Left, Table 1)

B

(Down, Right, Table 1)

C

(Down, Left, Table 2)

D

(Up, Right, Table 2)

Answer

(Up, Left, Table 1)

Explanation

Solution

The correct options is (A): (Up, Left, Table 1) and (D): (Up, Right, Table 2)