Answer to Question #6071 in Microeconomics for Halime
Anne and Per like talking to each other. There are N bars in their home town.
On Friday, Per and Anne simultaneously (but independently) decide which
bar to go to. If they happen to meet in the same bar, they both get a utility of 1.
If they do not meet, the utility is 0 for each of them.
Assume N = 2.
Write this game in normal form (matrix) and find all pure-strategy Nash
Normal form: [table] Anne Bar 1Bar 2PerBat 1(1; 1)(0; 0)Bar 2(0; 0)(1; 1)[/table] We have two points of Nash equilibrium – (1;1) and (1;1), from which any player could move to improve his situation.