Three people are considering going to the bar. Each wants to go if only one other person goes- if one goes and no one else goes, the one at the bar will feel silly, but if all three go it will be overcrowded. If three of them all go to the bar, the bar is too crowded their payoff each lose one. if you can go to the bar with just another person, your payoff is two. if you stay at home, your payoff is one. but if you go to the bar with another person, your payoff is two.
Identify how are you going to model this game using game theory?Nash Equilibrium (1,2,2)
What are the players, game strategies and payoff of outcome?(2,1,2)
Why is the game interesting?(2,2,1)
What is the Dominant strategy of this game?(1,1,1)
What is the payoff of each player?
What is the Nash equilibrium?
What are the recommendation on each of players?