5. Consider the following game:LR3,1-2,-12,01,41C 1,-1D 0,-12,04,0a. Find all pure NE.b. There is a unique MNE. Find it and show why there is no otherone.c. Since the outcome (A, R) prescribes negative payoffs for bothplayers, a natural conjecture might be to think that the followingdistribution over outcomes is a correlated equilibrium. Is it so?LRA 1/3B 1/3 1/3CD2)A.

1/2LRA3, 1-2, -1B2, 01, 4C1, -12, 0D0, -14, 0

Answered: 5. Consider the following game: 1 L 3,1…

5. Consider the following game: 1 L 3,1 2,0 C 1,-1 D 0,-1 ABCD A 2 R -2,-1 1,4 2,0 4,0 a. Find all pure NE. b. There is a unique MNE. Find it and show why there is no other one.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

5. Consider the following game:
L
R
3,1
-2,-1
2,0
1,4
1
C 1,-1
D 0,-1
2,0
4,0
a. Find all pure NE.
b. There is a unique MNE. Find it and show why there is no other
one.
c. Since the outcome (A, R) prescribes negative payoffs for both
players, a natural conjecture might be to think that the following
distribution over outcomes is a correlated equilibrium. Is it so?
L
R
A 1/3
B 1/3 1/3
C
D
2)
A.

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12. Consider a game where each player picks a number from 0 to 60. The guess that is closest to half ofthe average of the chosen numbers wins a prize. If several peopleare equally close, then they share theprize. The game theory implies that (A) all players have dominant strategies to choose 0 (B) all players have dominant strategies to choose 30 (C) there is a Nash equilibrium where all players pick 0 (D) there is a Nash equilibrium where all players pick positive numbers 13. Behavioral data in such games suggests that (A) most subjects choose 0; (B) most subjects choose 30; (C) common answers include 30, 15, 7.5, and 0; (D) most subjects use randomization. Can you help me answer number 13 please?
6. Consider the following two-player game: 2 L M U 3,3 2,3 1 M 2,1 3,1 D R 0,2 3,3 0,3 3,0-5, -5 a. Find all pure NE. b. Find a (non-pure) MNE in which player 1 (the row player) plays a pure strategy. c. (Harder Question) Show that there cannot be a CE prescribing that strat- egy D of player 1 (the column player) is played with positive probability.
3. Consider the following payoff matrix for a complementary investment game: WCG a. Do Not Invest C. Invest b. What is the Nash equilibrium? Do Not Invest What is the maximin solution? 0 Does either firm have a dominant strategy? -100 BB 0 0 Invest 0 20 d. How do your answers change if BB loses 5 if it invests and WCG doesn't invest? 110 10
2
Please answer with the step and explaining and no reject thank y
The hand written is not allowed.
P&G 1.10 1.20 1.10 - 226 - 215 1.20 - 106 - 89 1.30 - 56 - 37 1.40 - 44 - 25 1.50 - 52 -32 1.60 - 70 -51 - 93 -76 1.70 1,80 - 118 - 102 Why is this situation an example of the prisoners' dilemma game? This game is a type of prisoners' dilemma because O A. the firms are rivals. OB. competing maximizes joint firm profits. O C. the game results in cooperation. Click to select your answer. 1.30 - 204 -73 - 19 -6 - 15 - 34 - 59 -87 1.40 -194 - 58 2 S 12 5 3 - 18 -44 -72 1.50 - 183 - 43 15 29 20 -1 - 28 -57 1.60 - 174 - 28 31 46 36 14 -13 -44 1.70 - 165 - 15 47 62 52 30 1 -30 130 15228841517 1.80 - -2 62 68 44