Solution

ID: past-exam-of-the-computer-science-course-of-the-university-of-oxford/2020/computational-game-theory/1/c/solution

At joint purchase, each player's gain from continuing to buy rather than deviating to is . Both actions are best responses exactly when this is nonnegative. Therefore
At equality both players are indifferent to their individual unilateral deviations, which is permitted in a Nash equilibrium. The condition is less restrictive than requiring either player's action to be a weakly dominant strategy: only the opponent's actual action needs to be considered.

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