2. In this question, your goal will be to understand whether learning in games is always valuable for players. Consider thefollowing incomplete-information game. First, nature chooses between one of the following two A and B tables, each withprobability 0.5:ALRBLRU0,0 6,-3U-20,-20 -7,-16D -3,65,5D -16,-7 -5,-5Then, players 1 and 2 simultaneously choose U or D and L or R, respectively, and obtain payoffs according to the table chosenby nature. Parts I-III present variations of this game under different assumptions about what players know about nature'smove. Part IV.(j) Suppose player 2 does not observe nature's move. Does player 1 benefit from learning about nature's move?Hint: Compare player 1's BNE expected payoff in (f) to that in (c).(k) Suppose player 1 observes nature's move. Does player 2 benefit from learning about nature's move?Hint: Compare player 2's BNE expected payoff in (i) to that in (f).

Answered: 2. In this question, your goal will be…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider the following 2-person game, Player 2 A C А 3,3 1,1 0,0 1,1 2,2 0,1 0,0 1,0 0,0 Player 1 B C a) What would you recommend to a player who intends to play action? b) What are the Nash equilibria of the game? c) If you were asked to give a prediction as to what two people playing this game would do, what is your prediction? Why?
For the game given, find a Nash equilibrium in which both players randomize.
2. Consider a two-stage game of complete but imperfect information where players 1 and 2 simultaneously choose actions a₁ and a₂ in stage 1 and players 3 and 4 simultaneously choose actions a3 and a in stage 2. Provide the notation for the Nash equilibrium in stage 2. How come players 1 and 2 can anticipate this outcome in stage 2?
3. Find ALL Nash equilibria of the following game: Nature begins by choosing one of the 2x2 games. It chooses the left game with probability a, and the right game with probability 1- a. Player 2 is INFORMED about nature's choice but player 1 IS NOT informed. L KR R 0,0| 5, 0,0 U 2, 2 0, 3 U D 3, 1, 1 D 1 Are there values of a for which there exists a mixed strategytequilibrium?
This Question: The adjacent payoff matrix has how many Nash equilibria? OA. Three O B. Two O C. Zero O D. One Firm B (B) Conduct research and development Do not conduct research and development Firm A (A) Conduct research and Do not conduct research and development development A: $2 million B: $2 million A: $6 million B: $3 million A: $4 million B: $7 million A: $1 million B: $1 million
Please try to solve it in 30 minute
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1. Use the following game tree to answer parts a & b. At a chance node (Nature's turn) or when a player is indifferent between strategies, each branch has equal likelihood (50% chance they take either path). Nature receives no payoff. Assume players are mistake proof. Use a complete strategy when discussing the results of this game and provide a payoff, even if that payoff is an expected one. Recall that an expected payoff is the "average" payoff: for example if with 50% chance we receive a payoff of 5 and with 50% chance we receive a payoff of 2, the expected payoff is .5 x 5+ .5 x 2 = 3.5 a. What is the outcome of the game? Assume players are risk neutral (i.e., they see no difference in getting a payoff of 5 vs an expected payoff of 5). Red 0, 1, 3, 3 3, 2, 3, 2 Dorothy Blue Top 1, 4, 3, 2 Scarecrow 50% Green Nature Right Bottom 0, 2, 3, 1 Lion 50% 1, 3, 4, 2 3, 4, 3, 2 50% Left Nature 3, 2, 1, 2 Up 50% Red. 1, 3, 4, 2 Down Tinman Blue 0, 3, 3, 3 Yellow Dorothy 4, 3, 4, 2…
3. Suppose we play the following game. I give you $100 for your initial bankroll. At each time n, you decide how much of your current wealth to bet. You cannot borrow money. You can only play with the money I gave you in the beginning or any money that you have won so far. The game is simple. At each time n ≥ 1, you decide the amount to bet. I will roll a fair die. If the die comes up 1,2,3,..., or 5, you win; if the die comes up 6, then you lose. IOW, if you bet $10 on the first roll, you will either have $90 or $110 after the first roll. (a) Suppose you wish to maximize your profit on the first roll. How much should you bet? (Most of you will get this wrong.) (b) What is the expected profit on the first roll if your bet is b with 0 ≤ b ≤ 100? (c) Suppose you wish to maximize your expected profit on the first roll. How much should you bet? (d) Suppose you wish to maximize your expected profit betting on the nth roll. How much of your current wealth do you bet? (e) Let X₂, be your…
What are Nash Equilibria in the following game? Select all that apply. Pizza Jazz 7 meats Seafood Jazz Veggie 20,7 9,8 9,8 Tasty Pizza BBQ 20, 13 9, 12 18, 12 Prawn 20, 7 9,9 18, 17 (Veggie, 7 meats) (Veggie, Seafood) (Veggie, Jazz) (BBQ, 7 meats) (BBQ, Seafood) (BBQ, Jazz) (Prawn, 7 meats) (Prawn, Seafood) (Prawn, Jazz) (9,8) O (20,13) (18,7)
Given for the first photo and second photo for the question

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