Anne and Bruce would like to rent a movie, but they can’t decide what kind of movie to choose. Anne.

Anne and Bruce would like to rent a movie, but they can’t
decide what kind of movie to choose. Anne wants to rent a comedy, and Bruce
wants to rent a drama. They decide to choose randomly by playing “Evens or Odds.”
On the count of three, each of them shows one or two fingers. If the sum is
even, Anne wins and they rent the comedy; if the sum is odd, Bruce wins and
they rent the drama. Each of them earns a payoff of 1 for winning and 0 for
losing “Evens or Odds.”

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(a) Draw the game table for “Evens or Odds.”

(b) Demonstrate that this game has no Nash equilibrium in
pure strategies.

 

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