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    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?
    A (Lie, Lie) Correct Answer Incorrect Answer
    B (Truth, Truth) Correct Answer Incorrect Answer
    C (Lie, Truth) Correct Answer Incorrect Answer
    D There is no Nash Equilibrium Correct Answer Incorrect Answer

    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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