#2) Consider the following 2-player, simultaneous move static game summarized by the normal form payoff matrix below: ROW Y A 4,3 1,1 COL B 0,2 1,1 2,5 3,0 3,2 a) Can you eliminate any strategies because they are strictly dominated? Reduce the game as much as possible using common knowledge of rationality and explain any steps taken. (ie: what dominates what?) b) Find all Nash equilibrium strategy profiles for this static game. Be sure to specify which strategy is chosen by each player in the equilibrium (describe the strategies, not the payoffs). c) Identify the Pareto Efficient allocations (describe the strategies, not the payoffs).
#2) Consider the following 2-player, simultaneous move static game summarized by the normal form payoff matrix below: ROW Y A 4,3 1,1 COL B 0,2 1,1 2,5 3,0 3,2 a) Can you eliminate any strategies because they are strictly dominated? Reduce the game as much as possible using common knowledge of rationality and explain any steps taken. (ie: what dominates what?) b) Find all Nash equilibrium strategy profiles for this static game. Be sure to specify which strategy is chosen by each player in the equilibrium (describe the strategies, not the payoffs). c) Identify the Pareto Efficient allocations (describe the strategies, not the payoffs).
Chapter8: Game Theory
Section: Chapter Questions
Problem 8.6P
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(J)
![#2) Consider the following 2-player, simultaneous move static game summarized by the normal
form payoff matrix below:
X
ROW Y
A
1,1
COL
B
1,1
2,5
3,0
1,1
Z
0,2
1,3 3,2
a) Can you eliminate any strategies because they are strictly dominated? Reduce the game
as much as possible using common knowledge of rationality and explain any steps
taken. (ie: what dominates what?)
b) Find all Nash equilibrium strategy profiles for this static game. Be sure to specify which
strategy is chosen by each player in the equilibrium (describe the strategies, not the
payoffs).
c) Identify the Pareto Efficient allocations (describe the strategies, not the payoffs).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbcfa4abf-9d80-4e31-a96f-c71fbf108693%2Fc4d18b04-6097-4fc4-98b7-c08f6dc37291%2F9lu4a68_processed.jpeg&w=3840&q=75)
Transcribed Image Text:#2) Consider the following 2-player, simultaneous move static game summarized by the normal
form payoff matrix below:
X
ROW Y
A
1,1
COL
B
1,1
2,5
3,0
1,1
Z
0,2
1,3 3,2
a) Can you eliminate any strategies because they are strictly dominated? Reduce the game
as much as possible using common knowledge of rationality and explain any steps
taken. (ie: what dominates what?)
b) Find all Nash equilibrium strategy profiles for this static game. Be sure to specify which
strategy is chosen by each player in the equilibrium (describe the strategies, not the
payoffs).
c) Identify the Pareto Efficient allocations (describe the strategies, not the payoffs).
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