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15 September, 12:49

Player ll D EF A 10,3 2,-2 10,-1 Player B 3-3 4,3 7-2 C 2,5 3,06,1 In the strategic form game above, the set of rationalizable strategies for players 1 and 2 are respectively: 0 a. {A, B, C) and {D, E, F) b (A, B) and (D, E). c. {A, D) and {B, E). d. {A) and (D).

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  1. 15 September, 13:51
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    b (A, B) and (D, E).

    Explanation:

    When player 1 chooses A then, player 2 has a more pay-off in choosing D. And when player 1 chooses B then, player 2 has more pay-off in choosing E. And when player 1 chooses C then, player 2 has more pay-off in choosing D. Therefore, for player 2 the set of rationalizable strategies are [D, E].

    Similarly, when player 2 choose D the, player 1 has more pay-off in choosing A. And when player 2 chooses E then, player 1 has more pay-off in choosing B. And when player 2 chooses F then, player 1 has more pay-off in choosing A. Therefore, for player 1 the set of rationalizable strategies are [A, B].
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