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COMM_V 295 105 106 2025W1 Participation/Math Quiz #2

Numerical

Consider the following game.                                                   Player B                                    Accept      Reject                     Accept     5, 7          13, X Player A     Reject       7, 9          X,  6 What should be the minimum possible value of X for this game to be a Coordination Game? (Note: if it must be higher than 10, enter 10)

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First, let's lay out the payoff matrix described in the problem so we can analyze players' incentives clearly: - If A Accepts and B Accepts: (A payoff, B payoff) = (5, 7) - If A Accepts and B Rejects: (13, X) - If A Rejects and B Accepts: (7, 9) - If A Rejects and B Rejects: (X, 6) Next, we determine the best responses for each player given the other player's action, since a coordination game is typically defined by the existence of multiple pure-strategy Nash equilibria where players’ best responses align to support coordinated outcomes. 1) B's best response to A Accepting: - If B Accepts: B gets 7 - If B Rejects: B gets X So, when A Accepts, B prefers Accept if 7 ≥ X and prefers Reject if X > 7. At X = 7, B is in......Login to view full explanation

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