Question

Two friends Aditi and Raju are deciding independently whether to watch a movie or go to a music concert that evening. Both friends would prefer to spend the evening together than apart. Aditi would prefer that they watch a movie together, while Raju would prefer that they go to the concert together. The payoff matrix arising from their actions is presented below. p and (1 - p) are the probabilities that Aditi will decide in favour of the movie and concert, respectively. Similarly, q and (1 - q) are the probabilities that Raju will decide in favour of the movie and concert, respectively. Which one of the following options correctly contains all the Nash Equilibria ?

		Raju
Aditi		Movie	Concert
	Movie	2,1	0,0
	Concert	0,0	1,2

• A. \((p=0,q=0);(p=1,q=1);(p=\frac{2}{3},q=\frac{1}{3})\)
• B. \((p=0,q=1);(p=1,q=0);(p=\frac{2}{3},q=\frac{1}{3})\)
• C. \((p=0,q=0);(p=1,q=1);(p=\frac{1}{3},q=\frac{2}{3})\)
• D. \((p=0,q=1);(p=1,q=0);(p=\frac{1}{3},q=\frac{2}{3})\)

Answer 1

The Correct Option is A

The correct option is (A) : \((p=0,q=0);(p=1,q=1);(p=\frac{2}{3},q=\frac{1}{3})\).