Question 1 [20%]

Consider the following normal form game G:

X

Y

A B

4,-47, -7

8, -86, -6

a. [6% ] Is there a pure Nash equilibrium in G? Justify your answer.

b. [14% ] Compute a mixed equilibrium using the indifference conditions of the players. Present both the

equilibrium and the analysis clearly. No coding is required.