4. Two students will take an exam. The one with the higher score will receive an A andthe other one will receive a B. Student 1's score equals x1 + 1.5 where x1 is the amount ofeffort she invests in studying. Student 2's score is x2 where x2 is the amount of effort sheexerts. Assume that x1 and x2 can take any value in [0, 1, 2, 3, 4, 5]. The payoff to studenti is 10 – x;if she gets an A and 8 – x; if she gets a B.a) Which strategies can be removed by iterated deletion of strictly dominated strategies?b) Which strategies can be removed by iterated deletion of weakly dominated strategies?

Student 1's score: Score of Student 1 = x1 + 1.5Student 2's score: Score of Student 2 = x2Payoff for…

4. Two students will take an exam. The one with the higher score will receive an A and e other one will receive a B. Student 1's score equals x₁ + 1.5 where x₁ is the amount of ort she invests in studying. Student 2's score is x2 where x2 is the amount of effort she erts. Assume that ₁ and ₂ can take any value in [0, 1, 2, 3, 4, 5]. The payoff to student s 10 x; if she gets an A and 8 Xi if she gets a B. a) Which strategies can be removed by iterated deletion of strictly dominated strategies? b) Which strategies can be removed by iterated deletion of weakly dominated strategies?

4. Two students will take an exam. The one with the higher score will receive an A and e other one will receive a B. Student 1's score equals x₁ + 1.5 where x₁ is the amount of ort she invests in studying. Student 2's score is x2 where x2 is the amount of effort she erts. Assume that ₁ and ₂ can take any value in [0, 1, 2, 3, 4, 5]. The payoff to student s 10 x; if she gets an A and 8 Xi if she gets a B. a) Which strategies can be removed by iterated deletion of strictly dominated strategies? b) Which strategies can be removed by iterated deletion of weakly dominated strategies?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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