Question

Suppose you and your roommate are deciding who gets the last slice of a pie. You both value the slice at a utility of 3, and either of you would feel upset about not eating the slice and receive a utility of -2. If you share the slice equally, you both get a utility of 1. Now you decide to let fate decide, so you play a round of “rock paper scissors”. Try to construct a payoff matrix of this game that you play with your roommate. Is there any (pure strategy) Nash Equilibrium in this game?

Name: suppose you and your roommate are deciding who gets the last slice of a pie you both value the slice at a utility of 3 and either of you would feel upset about not eating the slice and recei 15483
Uploaded: 2021-09-20T21:40:03-08:00
Duration: 2 min 6 s
Channel: Kaylee Mcclellan
Description: suppose you and your roommate are deciding who gets the last slice of a pie you both value the slice at a utility of 3 and either of you would feel upset about not eating the slice and recei 15483

          Suppose you and your roommate are deciding who gets the last slice of a pie. You both value the slice at a utility of 3, and either of you would feel upset about not eating the slice and receive a utility of -2. If you share the slice equally, you both get a utility of 1. Now you decide to let fate decide, so you play a round of “rock paper scissors”. Try to construct a payoff matrix of this game that you play with your roommate. Is there any (pure strategy) Nash Equilibrium in this game?

Added by Rachel C.

Principles of Economics

Gregory Mankiw 8th Edition

Instant Answer

Solved by Expert Kaylee Mcclellan

09/20/2021

Step 1

- If you lose, your roommate gets the last slice of pie (utility of 3) and you receive a utility of -2. - If it's a tie, you both share the slice equally (utility of 1). The payoff matrix would look like this: | | Rock | Paper | Scissors Show more…

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Suppose you and your roommate are deciding who gets the last slice of a pie. You both value the slice at a utility of 3, and either of you would feel upset about not eating the slice and receive a utility of -2. If you share the slice equally, you both get a utility of 1. Now you decide to let fate decide, so you play a round of “rock paper scissors”. Try to construct a payoff matrix of this game that you play with your roommate. Is there any (pure strategy) Nash Equilibrium in this game?