Nash equilibrium or equilibria, Macroeconomics

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Suppose A can somehow change the game in problem 5.1 to a new one in which his payoff from Up is reduced by 2, producing the following payoff matrix.

a. Find the Nash equilibrium or equilibria.

b. Which player, if any, has a dominant strategy?

c. Does A benefit from changing the game by reducing his or her payoff in this way?


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