Political Economy
Assignment 1Q1.A nash equilibria is a point in the game where each player chooses the strategy that maximizes his expected payoff given the strategies chosen by other players, no one has an incentive to deviate.Player2 L R Player 1U 3*, 4* 1,1 D 2,3 2,2 Here pure strategy nash equilibria is for Player 1 to choose U and for Player 2 is L (3;4). For Player 1, it is better to choose U with a payoff of 3 rather than 2 when he chooses D. Similarly, selecting L with a payoff of 4 is better for Player 2 rather than choosing R with payoff of 1. Therefore, these are the best outcomes for both players in a given options.
Player 2 L R U 3*, 4* 0,0 Player 1D 2,0 2,2 In this game the nash equilibria is the same as before. It is the best option to choose U for Player 1 with a payoff of 3 it will be irrational if he chooses D with a payoff of 2, as it is less than 3. For Player 2, L with a payoff of 4 is the best choice to get the maximum payoff. The nash equilibria has not changed because we do not have any choice for both players with a better payoffs.Q2.Ordering ABC ACB BAC BCA CAB CBA Proportion of Voters 6%36%2%31%1%24%