1) In a 2 x 2 game, show an example of a strategy profile where both players are choosing a Weakly Dominant Strategy, but neither player is playing a strict best response to the other’s strategy.
2) Consider the game below.
Player 1(left) Player 2(top)
C | D | E | F | |
A | 1,2 | 3,1 | 0,0 | 5,3 |
B | 1,1 | 1,3 | 0,2 | 4,2 |
(a) Which outcome(s) would you predict in this game assuming only that both players are rational and that Player 2 knows that Player 1 is rational?
(b) Which outcome(s) would you predict in this game assuming that the rationality of both players is common knowledge?