Consider the Following Normal-Form Game

question 71

Essay

Consider the following normal-form game. a. What is player B's best strategy in a simultaneous-move play of this game?
b. What is player A's best strategy in a simultaneous-move play of this game?
c. What are player A and B's equilibrium payoff in a simultaneous-move play of this game?
d. Use an extensive-form representation to show that player B can earn higher payoffs by exercising a first-mover advantage. (Note: Player B's payoffs will appear first in this extensive-form game since it is the first mover.)
e. List two things player B must do in order to be able to achieve these higher payoffs.

---

Definitions:

Presbyopia

A common eye disorder that results in the loss of lens elasticity. Presbyopia develops with age and causes a person to have difficulty seeing objects close up.

Iritis

An inflammation of the iris, the colored part of the eye, which can cause pain, redness, and potentially, loss of vision if not treated.

Astigmatism

A condition in which the cornea has an abnormal shape, which causes blurred images during near or distant vision.

Strabismus

A condition that results in a lack of parallel visual axes of the eyes; commonly called crossed eyes.