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<1. If the payoff matrix is | L | R |
---|---|---|
U | 0, 0 | 0, −c |
D | −c, 0 | 1 − 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