Pat and Chris must independently decide whether to go to Naan n’ Curry or Top Dog at noon.
Pat prefers Naan n’ Curry; Chris prefers Top Dog; and as BFF’s, they derive no jollies unless
they eat together. Specifically, if they both choose Top Dog, Chris earns 3 jollies and Pat 1 jolly,
and vice versa if they eat at Naan n’ Curry.
(a) Draw the strategic form
(b) Identify all Nash equilibria
Solution
The following table shows the pay off matrix:
Pat
Chris
(b) The nash equilibria are (Naan,Naan) and (Tog Dog, Top Dog) i.e (1,3) and (3,1)
Pat
ChrisNaanTop dogNaan1,30,0Top dog0,03,1.
Basic Civil Engineering first year Notes- Chapter 4 Building.pptx
Pat and Chris must independently decide whether to go to Naan n’ Cur.pdf
1. Pat and Chris must independently decide whether to go to Naan n’ Curry or Top Dog at noon.
Pat prefers Naan n’ Curry; Chris prefers Top Dog; and as BFF’s, they derive no jollies unless
they eat together. Specifically, if they both choose Top Dog, Chris earns 3 jollies and Pat 1 jolly,
and vice versa if they eat at Naan n’ Curry.
(a) Draw the strategic form
(b) Identify all Nash equilibria
Solution
The following table shows the pay off matrix:
Pat
Chris
(b) The nash equilibria are (Naan,Naan) and (Tog Dog, Top Dog) i.e (1,3) and (3,1)
Pat
ChrisNaanTop dogNaan1,30,0Top dog0,03,1
