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Question

Mathematics for Economy Question on Matrix

In a two-player game, player 1 can choose either U or D as strategies. Player 2 can choose either L or R as strategies. Let 𝑐 be a real number such that 0<𝑐<10 < 𝑐 < 1. If the payoff matrix isLR
U0, 00, −c
D−c, 01 − c, 1 − c
then the number of pure strategy Nash Equilibria in the game equals
A

1

B

2

C

3

D

4

Answer

2

Explanation

Solution

The correct answer is (B): 2