Graphical Analysis of Best Response
Two software developers, Player A and Player B, are deciding whether to use a new 'Experimental' coding framework or stick with the 'Standard' one for a joint project. The table below shows the satisfaction score each developer gets from the outcome, with scores listed as (Player A's score, Player B's score). The accompanying graph shows the four possible outcomes plotted, along with several of Player A's indifference curves (higher curves like U3 represent greater satisfaction for Player A).
| Player B: Standard | Player B: Experimental | |
|---|---|---|
| Player A: Standard | (3, 3) | (1, 4) |
| Player A: Experimental | (4, 1) | (2, 2) |
[Image of a 2x2 grid with points (3,3), (1,4), (4,1), and (2,2) plotted. Player A's satisfaction is on the horizontal axis, and Player B's is on the vertical axis. Indifference curves for Player A are shown as vertical curves, with curves further to the right (e.g., passing through x=4) representing higher satisfaction than curves to the left (e.g., passing through x=3).]
If Player B chooses to use the 'Standard' framework, which action is Player A's best response? Explain your reasoning by referring specifically to the outcomes and Player A's indifference curves on the graph.
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Graphical Analysis of Best Response
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- Point Y: (8, 4)
- Point Z: (7, 2)
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- U3 passes through point Y.
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