This assignment is designed to provide you with the opportunity to communicate about technical and abstract material in a clear and straightforward
manner. You will spend some time each week writing up a response to a question/prompt, and then posting that on a discussion board that your peers
will review. By doing this each week, you’ll get practice writing about technical matters.
Directions
Here is the prompt. In 500 words, write an answer to the following question:
Discussion Prompt
What are the Nash equilibria in the following game?
Player 2
F G H
B 4, 8 2, 6 10, 1
Player 1 C 3, 2 5, 3 7, 2
D 1, 9 5, 1 3, 6
E 2, 2 3, 6 2, 2
In your answer, be sure to complete the following tasks:
Explain what a rationalizable strategy is.
Explain why picking rationalizable strategies can go wrong.
Explain the Nash solution concept.
Explain what kind of equilibria the Nash solution concept will predict.
Explain how to calculate the Nash equilibria in a matrix-form game.
Say which strategy profiles in the above game are Nash equilibria, and explain why those particular profiles are the Nash equilibria.
Next week, you will review each other’s answers to this question. To review the assignment, you will basically check that your peer completed each of
the tasks — (a) through (f) — listed above, and you will assign 1 point for each completed task. To make this explicit, you will use the rubric below to
assign points.
Sample Solution