Question

B red white red X,Y 4,13 A white 12,8 6,Z 3. Consider Figure 1. Say that...

B
red white
red X,Y 4,13
A
white 12,8 6,Z

3. Consider Figure 1. Say that X = 13, Y = 16 and Z = 6. In this case, player B’s best response to A playing

red is ____ and B’s best response to A playing white is ____.

(a.) Red; red

(b.) Red; white

(c.) White; red

(d.) White; white

Homework Answers

Answer #1

In the above diagram, I have updated all the values as mentioned in the question.

First Part: When A plays red, then B has two options either to go for Red or White. B will always choose the option in which he gets a higher payoff. If B chooses red he gets 16, whereas if he chooses white he gets 13. So, it is very obvious B will choose Red when A chooses Red.

Second Part: When A plays white, then B will get 8 if chooses Red and 6 if he chooses white. So, he will go with a higher payoff so he will choose red again. Therefore, B chooses Red, when A chooses White.

Hence, we can conclude that the correct answer is Option (A) i.e Red, Red.

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