Question
Mathematics for Economy Question on Matrix
In a two-player game, player 1 can choose either M or N as strategies. Player 2 can choose either X, Y, or Z as strategies. The payoff matrix is as follows:
| a | X | Y | Z |
|---|---|---|---|
| M | 3, 1 | 0, 0 | −1, 2 |
| N | 0, 0 | 1, 3 | 0.5, 1 |
Which set of strategy profiles survives iterated elimination of strictly dominated strategies?
A
(N, Y)
B
(M, X)
C
(N, Z)
D
(M, Z)
Answer
(N, Y)
Explanation
Solution
The correct answer is (A) : (N, Y)