4. King Leonidas and King Xerxes assemble their armies for a battle against each other. The king who brings more warriors wins the battle and gets control over Sparta. Both kings value the throne of Sparta the same amount. King Leonidas can equip r warriors per 1000 gold coins spent and King Xerxes can equip y warriors per 1000 gold coins spent. Let x and y be drawn independently from a uniform distribution with the support [0, z], z > 0. (a) Suppose that both r and y are observable. Show that there is no equilibrium in pure strategies in this game. (b) Suppose that Leonidas privately learns r and Xerxes privately learns y. How many warriors Gebt in the httle
4. King Leonidas and King Xerxes assemble their armies for a battle against each other. The king who brings more warriors wins the battle and gets control over Sparta. Both kings value the throne of Sparta the same amount. King Leonidas can equip r warriors per 1000 gold coins spent and King Xerxes can equip y warriors per 1000 gold coins spent. Let x and y be drawn independently from a uniform distribution with the support [0, z], z > 0. (a) Suppose that both r and y are observable. Show that there is no equilibrium in pure strategies in this game. (b) Suppose that Leonidas privately learns r and Xerxes privately learns y. How many warriors Gebt in the httle
Chapter8: Game Theory
Section: Chapter Questions
Problem 8.8P
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![4. King Leonidas and King Xerxes assemble their armies for a battle against each other. The king
who brings more warriors wins the battle and gets control over Sparta. Both kings value the
throne of Sparta the same amount.
King Leonidas can equip x warriors per 1000 gold coins spent and King Xerxes can equip
y warriors per 1000 gold coins spent. Let E and y be drawn independently from a uniform
distribution with the support (0, z], z > 0.
(a) Suppose that both z and y are observable. Show that there is no equilibrium in pure
strategies in this game.
(b) Suppose that Leonidas privately learns z and Xerxes privately learns y. How many warriors
fight in the battle between Leonidas and Xerxes?
(c) Keep the assumptions made in 4b. Suppose that the god of war Ares loves large battles.
Mighty Ares threatens to keep Sparta for himself if both kings bring less than a warriors
each. Find a that maximizes the size of the winning army on average.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff84d250d-3879-4216-880f-eb73f0fc712b%2Fb7fbcbef-89bb-4971-86dd-9e5524ba676d%2Ffdqpero_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4. King Leonidas and King Xerxes assemble their armies for a battle against each other. The king
who brings more warriors wins the battle and gets control over Sparta. Both kings value the
throne of Sparta the same amount.
King Leonidas can equip x warriors per 1000 gold coins spent and King Xerxes can equip
y warriors per 1000 gold coins spent. Let E and y be drawn independently from a uniform
distribution with the support (0, z], z > 0.
(a) Suppose that both z and y are observable. Show that there is no equilibrium in pure
strategies in this game.
(b) Suppose that Leonidas privately learns z and Xerxes privately learns y. How many warriors
fight in the battle between Leonidas and Xerxes?
(c) Keep the assumptions made in 4b. Suppose that the god of war Ares loves large battles.
Mighty Ares threatens to keep Sparta for himself if both kings bring less than a warriors
each. Find a that maximizes the size of the winning army on average.
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