Neco 2023 Civic Education Question 25

Practice objective / multiple choice question 25 from the 2023 Neco Civic Education examination.

Neco 2023 Civic Education Objective / Multiple Choice Hard Difficulty
Question 25 NECO • 2023 • CIVIC_EDUCATION • objective

Two rival groups, A and B, can each choose either Escalate (E) or Negotiate (N). Their payoff matrix (in millions of naira) is: - (E,E): each gets 2 - (E,N): A gets 7, B gets 1 - (N,E): A gets 1, B gets 7 - (N,N): each gets 4 Identify all pure‑strategy Nash equilibria. Then determine whether there exist mixed‑strategy equilibria by finding probabilities p (A chooses E) and q (B chooses E) that make each player indifferent between their two actions. State the values of p and q (to two decimal places) if they exist, and give the expected payoff for each group in that mixed equilibrium. If no feasible mixed equilibrium exists, state that fact.

Answer Options

A. Pure‑strategy Nash equilibria are (Escalate, Negotiate) and (Negotiate, Escalate); a mixed‑strategy equilibrium exists with p=0.50, q=0.50, giving each group an expected payoff of 4.5
B. Pure‑strategy Nash equilibria are (Escalate, Escalate) and (Negotiate, Negotiate); mixed‑strategy equilibrium has p=0.25, q=0.75, with expected payoff of 2.75 per group
C. Only pure‑strategy Nash equilibrium is (Negotiate, Negotiate); a mixed‑strategy equilibrium exists with p=0.33, q=0.67, yielding expected payoffs of 3.33 for each group
Correct Answer D. Only pure‑strategy Nash equilibrium is (Escalate, Escalate); no feasible mixed‑strategy equilibrium exists
Correct Answer
D
Correct Option:
Only pure‑strategy Nash equilibrium is (Escalate, Escalate); no feasible mixed‑strategy equilibrium exists

About This Question

This is Neco 2023 Civic Education Question 25. It is one of the objective questions from the 2023 Neco Civic Education examination.

Difficulty level: Hard .

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