Last Updated on 01/23/2023 by Sophia

Consider a game in which a seller can be either honest or dishonest and a buyer can

either inspect or trust (the seller). One game model of this is the matrix

where the rows are inspect and trust, and the columns correspond to dishonest and honest. (a) Find the replicator dynamics for this game.

(b) Find the Nash equilibria and determine which, if any, are ESSs.

(c) Analyze the stationary solutions for stability