3. Consider a two-player Rock-Paper-Scissors game: rock beats scissors, scissors beat paper, paper beats rock (this is another zero-sum game). Find pure strategy and mixed strategy nash equilibrium. Suppose winning gives player payoff of 1 and losing results in -1 payoff, in case of tie both get zero. Lets add one more strategy called Dynamite. Dynamite beats everything, but if both players choose it, they end up in the hospital, payoff -10,000 for both. Discuss how adding this new strategy affects the equilibrium outcomes of the game.
3. Consider a two-player Rock-Paper-Scissors game: rock beats scissors, scissors beat paper, paper beats rock (this is another zero-sum game). Find pure strategy and mixed strategy nash equilibrium. Suppose winning gives player payoff of 1 and losing results in -1 payoff, in case of tie both get zero. Lets add one more strategy called Dynamite. Dynamite beats everything, but if both players choose it, they end up in the hospital, payoff -10,000 for both. Discuss how adding this new strategy affects the equilibrium outcomes of the game.
Chapter8: Game Theory
Section: Chapter Questions
Problem 8.9P
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Transcribed Image Text:3. Consider a two-player Rock-Paper-Scissors game: rock beats scissors, scissors beat paper,
paper beats rock (this is another zero-sum game). Find pure strategy and mixed strategy nash
equilibrium. Suppose winning gives player payoff of 1 and losing results in -1 payoff, in case
of tie both get zero. Lets add one more strategy called Dynamite. Dynamite beats everything,
but if both players choose it, they end up in the hospital, payoff -10,000 for both. Discuss how
adding this new strategy affects the equilibrium outcomes of the game.
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