📚 Learning Guide
Nash Equilibrium and Strategy Adjustments
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In a game involving two players, Player A and Player B, each has the option to choose a cooperative strategy or a competitive strategy. If Player A chooses a cooperative strategy while Player B chooses a competitive strategy, Player A receives 2 points and Player B receives 5 points. If both choose cooperative strategies, they each receive 4 points. If both choose competitive strategies, they each receive 1 point. Given this scenario, what is the best response for Player A if Player B is expected to choose a competitive strategy?

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
Explore Topic

Choose the Best Answer

A

Choose cooperative strategy

B

Choose competitive strategy

C

Randomly choose either strategy

D

Choose a mixed strategy

Understanding the Answer

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Answer

In this game, if Player B is expected to choose a competitive strategy, Player A needs to think about what will give them the most points. If Player A also chooses a competitive strategy, they will only receive 1 point. However, if Player A chooses a cooperative strategy while Player B is competitive, they will earn 2 points. Since 2 points are better than 1 point, Player A’s best response to Player B’s expected choice of a competitive strategy is to choose a cooperative strategy. This way, Player A maximizes their score, even though they might not get the highest possible points overall.

Detailed Explanation

If Player B is going to be competitive, Player A should also choose competitive. Other options are incorrect because Choosing to cooperate when Player B is competitive means Player A only gets 2 points; Randomly choosing either strategy does not help Player A.

Key Concepts

cooperative strategies
best response
Topic

Nash Equilibrium and Strategy Adjustments

Difficulty

medium level question

Cognitive Level

understand

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