(Answered)-Consider the following game that represents the payoffs from - (2025 Updated Original AI-Free Solution
Question
- Consider the following game that represents the payoffs from different advertising campaigns (low, medium, and high spending) for two political candidates that are running for a particular office.? The values in the payoff matrix represent the share of the popular vote earned by each candidate:
|
| Candidate B - low | Candidate B - medium | Candidate B - high |
| Candidate A - low | 50, 50 | 40, 60 | 20, 80 |
| Candidate A - medium | 60, 40 | 50, 50 | 35, 65 |
| Candidate A - high | 80, 20 | 65, 35 | 50, 50 |
A) The Nash equilibrium occurs where both candidates use medium advertising campaigns.
B) If candidate A has a first-mover advantage, he will choose a low-spending advertising campaign, and Candidate B will respond with a high-spending advertising campaign.
C) The Nash equilibrium for the sequential and simultaneous versions of the game are identical.
D) There is no Nash equilibrium (in pure strategies) for this game.