Practice question · Put in order
Order the steps for finding a Nash equilibrium in a 2×2 payoff matrix.
- Declare those cells the Nash equilibria
- Repeat the marking from the rival’s perspective
- Find cells where both payoffs carry a best-response mark
- For each rival strategy, mark your best response
- Write each player’s payoff in every cell
Hints
- You can’t mark best responses before the payoffs exist.
- An equilibrium needs both players’ marks on the same cell.
Show the answer
- Write each player’s payoff in every cell
- For each rival strategy, mark your best response
- Repeat the marking from the rival’s perspective
- Find cells where both payoffs carry a best-response mark
- Declare those cells the Nash equilibria
Why
The best-response marking method turns equilibrium-hunting into a mechanical scan, doubly-marked cells are exactly the Nash equilibria.
Practise Game Theory in Business
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