Question

2 Static game ISuppose two players are playing a game, Even and Odd. Each player has a penny and mustsecretly turn the penny to heads or tails. The players then reveal their choices simultaneously.If the pennies match (both heads or both tails), then Even keeps both pennies, so wins onefrom Odd ( 1 for Even, -1 for Odd). If the pennies do not match (one heads and one tails)Odd keeps both pennies, so receives one from Even (-1 for Even, 1 for Odd).2.1 Please draw the payoff matrix for this game.2.2 Does Even have a dominant strategy

Answer 1

Answer: The answers are provided below.

Explanation:

1. A payoff matrix is a table whereby strategies of one player are listed in the rows and the strategies of the other player is listed in the columns while the cells show the payoffs to each player in such a way that the payoff of the row player is first listed.

The payoff matrix for this game has been attached.

2. In game theory, a strategic dominance occurs when a strategy is better than the strategy of another player. In this scenario, even does not have a dominant strategy because both strategies are providing equal payoffs for the pure strategy.