6. Consider the two-player Rock-Paper-Scissors game The payoff table is as follows. Player 2 Paper -1 0 1 Player 1 Rock Paper Scissors Rock 0 1 -1 Scissors 1 -1 0 (a) Follow the approach described in Sec 15.5 to formulate the problem of finding optimal mixed strategies according to the minimax criterion as a linear programming problem. Please give the linear programming problem for each player. (b) Use Excel Solver (the simplex method) to find the optimal mixed strategies for each player. Also find the value of the game. Is this a fair game? If not, is this game in favor of player 1 or 2?

6. Consider the two-player Rock-Paper-Scissors game The payoff table is as follows. Player 2 Paper -1 0 1 Player 1 Rock Paper Scissors Rock 0 1 -1 Scissors 1 -1 0 (a) Follow the approach described in Sec 15.5 to formulate the problem of finding optimal mixed strategies according to the minimax criterion as a linear programming problem. Please give the linear programming problem for each player. (b) Use Excel Solver (the simplex method) to find the optimal mixed strategies for each player. Also find the value of the game. Is this a fair game? If not, is this game in favor of player 1 or 2?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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For the game in FIGURE 7.6, derive players’ best-reply functions, plot them as shown in Figure 7.5, and find the Nash equilibrium.
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4
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