- Or Question 3 20 Marks Consider A Hypothetical Conflict Between Countries R And U Involving A Third Country A Count 1 (110.4 KiB) Viewed 18 times
or Question 3 [ 20 marks] Consider a hypothetical conflict between countries R and U, involving a third country A. Country R has two strategies at its deposal, namely, (i) War (ii) Negotiation (Neg.). (3.1) Likewise, country U also has two strategies at its deposal, namely, (i) War (ii) Negotiation (Neg. ). (3.2) Finally, country A has two strategies at its deposal, namely, (i) Providing Assistance to Country U (Assist. ), or or (ii Staying Neutral (Neutral ). (3.3) The payoff table for country R is given by (War, Assist. ) (War, Neutral ) (Neg. , Assist. ) (Neg., Neutral ) War - 10 + 5 + 8 + 10 Neg. - 5 0 0 + 2 In the above table, inside the round brackets (XXX, YYY), XXX represents the strategy applied by country U [refer to (3.2) ], and YYY represents the strategy applied by country A (refer to (3.3)]. The payoff table for country U is given by (War, Assist. ) ( War, Neutral ) (Neg., Assist. ) (Neg. Neutral) 4 War - 10 - 20 + 3 - 5 Neg. - 20 - 30 +1 2 In the above table, inside the round brackets (UUU, VVV), UUU represents the strategy applied by country R (refer to (3.1) ], and VVV represents the strategy applied by country A (refer to (3.3)]. Q.3 continues on the next page
[Question 3 continues...] The payoff table for country A is given by ( War, War ) (War, Neg.) (Neg., War ) (Neg., Neg. ) Assist. + 5 0 + 2 + 2 Neutral - 5 - 3 0 0 In the above table, inside the round brackets (AAA, BBB), AAA represents the strategy applied by country R (refer to (3.1) ], and BBB represents the strategy applied by country U ( refer to (3.2)]. Does the game has any Nash equilibrium? If your answer is “Yes”, then you are required to identify all the Nash equilibrium (equilibria). Justify you answer.