Question
Consider the following table
src="https://www.ixambee.com/questionimage/RBI-Gr-B-DEPR-Paper-I/1686638673-RBIGrBDEPRMT-4-2.JPG" alt="" /> What is the Nash Equilibrium here?Solution
B Lie Truth A Lie (-5,-5) (-8,-2) Truth (-2,-8) (-6,-6) If A lies, Best response of B is tell truth If A speaks truth , Best response of B is to tell truth If B Lies, Best response of A is to speak truth If B speaks truth, Best response of A is to speak truth So, Nash Equilibrium is (-6,-6) i.e. (Truth, Truth)
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