Annie and Peter Have Two Strategies Each at Their Disposal

question 83

Essay

Annie and Peter have two strategies each at their disposal: top and bottom. For the strategy combinations (top, top)and (top, bottom), the payoff is (0,100)in each case, where the first position refers to Annie, and the second to Peter. Similarly, for (bottom, top)the payoff is (- 20, - 50), while for (bottom, bottom)is (60, 60). Is there a Nash equilibrium in pure strategies? Is there a dominant strategy Nash equilibrium?

---

Definitions:

Tech-Savvy

Individuals who possess an advanced understanding and proficiency with technology and digital devices.

Millennials

A generation of people born between 1981 and 1996, known for being digital natives and value-driven consumers.

Generation Z

The demographic cohort following Millennials, typically defined as individuals born from the mid-1990s to the early 2010s, characterized by its comfort with digital technologies and social media.

Exchange Rate

The value of one currency for the purpose of conversion to another.