Step 2, she didn't multiply 8 by 0.75.
Hope this helps :)
Answer:
Step-by-step explanation:
Determine the best response of each player to each of the other player’s actions; plot them in a diagram and thus find the Nash equilibria of the game.
The best response for player 2 can be stated as:
(where X1 equals the dollar that a person names and Y2(X1) being the amount the person receives)
X1 Y2(X1)
0 10
1 9,10
2 8,9,10
3 7,8,9,10
4 6,7,8,9,10
5 5,6,7,8,9,10
6 5,6
7 6
8 7
9 8
10 9
Th best responses for player 1 would be the same.
Nash equilibria is the set of strategies that every person forms given no person has any incentive to change. Hence, we can say that there are 4 Nash equilibria: (5,5) , (5,6) , (6,5) , (6,6)
If you want to evaluate it, -4q-(-8q)+10 is changed to -4q+8q+10 (two negatives equal positive). Next, -4q+8q is 4q (since the bigger number is positive 8q, you subtract and get 4q). Finally, your answer is 4q+10. Hope this helps! :)
Step-by-step explanation:
do you want it that way or another way like step by step
