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
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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