Ron and Leslie are deciding what to do to clean up the park. They can either fill the bird feeders or clean the lake. In order to clean the lake they must work together neither one can clean it alone. The payoff is the utility they derive from completing a task (a higher number is better).
What is Leslie’s best response if Ron fills the bird feeder?
What is Leslie’s best response if Ron cleans the lake?
What is Ron’s best response if Leslie fills the bird feeder?
What is Ron’s best response if Leslie cleans the lake?
What is the Nash equilibrium?
True/False. Leslie is playing a dominant strategy.
Answer:
Leslie’s best response if Ron fills the bird feeder?- Bird feeder
Leslie’s best response if Ron cleans the lake? – Clean lake
Ron’s best response if Leslie fills the bird feeder? – Bird feeder
Ron’s best response if Leslie cleans the lake? – Clean lake
Nash equilibrium? – Bird Feeder, Bird feeder
Leslie is playing a dominant strategy. – False