In that case, if Player 1 plays U, 1/3 prob of getting 2, 1/2 prob of getting 0 and 1/6 prob of

4= 8/6
Similarly- for M it would be 7/6 and D gives 13/6
And they’re given the belief structure, best pay off for player 1 would be to play D

However, it is possible that even post the above process, the expected pay off of two actions
could have been the same, leading to more than 1 best response solution.
In a finite game, each belief system will have at least one best response.
In best response, forming the strategy is more important and the information on which hinges
and this explains the money spent on market research by firms. The research will help
estimate the changes in demand and likely strategies to be adopted by competitors.

Player 2

Player 1

Suppose p=0, i.e., always play R

P=1, i.e., always play L
Graphically proved that D is never better off after calculating the requisite pay off.
Strategy of U
and M always L C R
better than D U (2,6) (0,4) (4,4)
and hence D M (3,3) (0,0) (1,5)
is dominated D (1,1) (3,5) (2,3)
strategy

Figure 1
The above figure is a graphical representation given the various probabilities.