Consider the pay offs of two players, who are close friends. They can either go for Diwali shopping or they can watch World Cup Cricket match.
|
Player 1 |
|||
|
Diwali Shopping |
World Cup Watching |
||
|
Player 2 |
Diwali Shopping |
(2, 1) |
(0, 0) |
|
World Cup Watching |
(0, 0) |
(1, 2) |
|
Identify which of the following is true for them:
1
There is no Nash equilibrium for them.
2
There is only one Nash equilibrium where player 1 goes for Diwali shopping and player 2 goes for World Cup Match.
3
Any of the four combinations can be a Nash Equilibrium.
4
There are two Nash Equilibria.