a) Find the dominant strategies for both players. b) Explain why (B, L) is not a Nash Equilibrium. c) Find the Nash equilibrium of the above game
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- 6) The following is a static game D 2,2 0,3 D 3,0 1,1 a) Convert this game into dynamic form game b) Find the Nash equilibrium and subgame perfect Nash equilibrium of this game. c) If you consider this game as dynamic then what kind of dynamic game is this.Use the following normal-form game to answer the questions below. Player 2 Strategy C D Player 1 A 50, 50 120, 25 B 25, 120 55, 55 a. Identify the one-shot Nash equilibrium.multiple choice 1 (B,C) (B,D) (A,C) (A,D) b. Suppose the players know this game will be repeated exactly three times. Can they achieve payoffs that are better than the one-shot Nash equilibrium?multiple choice 2 No Yes c. Suppose this game is infinitely repeated and the interest rate is 6 percent. Can the players achieve payoffs that are better than the one-shot Nash equilibrium?multiple choice 3 No Yes d. Suppose the players do not know exactly how many times this game will be repeated, but they do know that the probability the game will end after a given play is θ. If θ is sufficiently low, can players earn more than they could in the one-shot Nash equilibrium?multiple choice 4 Yes NoQuestion 7 Consider the following extensive form game. The Subgame Perfect Equilibrium (SPE) of the game is X P2 Y P₂ D' C' N c' D' (2) () () (1) (1) (2) (2,4)
- This table shows a game played between two players, A and B. The payoffs in the table are shown as (Payoff to A, Payoff to B). B Left Right (3, 1) (5,7) (4, 3) Center (1, 4) (2, 2) (3, 2) (6, 2) (4, 6) (5, 5) Up Middle Down Which of the following outcomes represents a Nash equilibrium in the game? (Up, Center) (Middle, Right) (Down, Left) (Down, Center)This table shows a game played between two players, A and B. The payoffs in the table are shown as (Payoff to A, Payoff to B). B Right (2, 2) (1, 3) Left (3, 1) (0,0) Up A Down Which outcome is the Nash equilibrium in this game? (Up, Right) (Up, Left) (Down, Right) (Down, Left)Aedri Quick Lesson in Game Theory A Nash Equilibrium is an outcome in which neither player is better off by changing their strategy. 2.7 Is a Dominant Strategy equilibrium also a Nash equilibrium? a) Yes b) No esc The Ice Cream Guys $3.99 $4.99 + Chucky's Chunky CCT: $20,000 $3.99 ICG: $20,000 CCT: $60,000 ICG: $10,000 tab Treats CCT: $10,000 $4.99 ICG: $60,000 CCT: $40,000 ICG: $40,000 The table above is the payoff matrix for the annual profit of the only two ice-cream-truck firms operating in Beach City. They are deciding the price of an ice cream cone. %3D caps lo 2.8 What is Chucky's dominant strategy? a) $3.99 b) $4.99 c) Not enough information hift 2.9 What is the dominant strategy equilibrium in this situation? a) Both charge $3.99 b) Both charge $4.99 c) CCT charges $3.99 and ICG charges $4.99 d) CCT charges $4.99 and ICG charges $3.99 2.10 Suppose these two firms engaged in collusion (which, of course, totally doesn't happen because it is against the law). Which outcome would…
- Iterative Elimination of Dominated Strategies Exercise 4.2 Consider the following normal form of a game. Use IEDS to reduce this game and find any Nash Equilibrium. X Y Z (60,50) (50,110) (70,90) (100,60) (70,70) (110,100) (110,70) (100,110) (40,40)Use the following payoff matrix for a one-shot game to answer the accompanying questions. Player 2 Strategy X Y Player 1 A 50, 50 -110, 6 B 6, -110 26, 26 a. Determine the Nash equilibrium outcomes that arise if the players make decisions independently, simultaneously, and without any communication.check all that apply (26,26) (50,50) (-110,6) (6,-110) Which of these outcomes would you consider most likely?multiple choice 1 (-110,6) (50,50) (6,-110) (26,26) b. Suppose player 1 is permitted to “communicate” by uttering one syllable before the players simultaneously and independently make their decisions. What should player 1 utter?multiple choice 2 B A What outcome do you think would occur as a result?multiple choice 3 (26,26) (50,50) (-110,6) (6,-110) c. Suppose player 2 can choose its strategy before player 1, that player 1 observes player 2’s choice before making her decision, and that this move…Use the following payoff matrix for a one-shot game to answer the accompanying questions. Player 2 Strategy X Y Player 1 A 30, 30 16, -50 B -50, 16 50, 50 A. Determine the Nash equilibrium outcomes that arise if the players make decisions independently, simultaneously, and without any communication. check all that apply (16, −50) (−50, 16) (30, 30) (50, 50) Which of these outcomes would you consider most likely? multiple choice (16, −50) (50, 50) (−50, 16) (30, 30) B. Suppose player 1 is permitted to “communicate” by uttering one syllable before the players simultaneously and independently make their decisions. What should player 1 utter? multiple choice A or B What outcome do you think would occur as a result? multiple choice (−50, 16) (16, −50) (30, 30) (50, 50) c. Suppose player 2 can choose its strategy before player 1, that player 1 observes player 2’s choice before making her decision, and that this move structure is…
- Please look at the payoff matrix below which shows the benefits that would accrue to each player in a 2-player.non-sequential, non-repeated game. a) Identify the collusive (cooperative) equilibrium. b) Identify the secure strategy (maximin) equilibrium c) Identify the maximax equilibrium d) Identify the Nash equilibrium Apple Inc. Strategy 1 Strategy 2 Strategy 3 20 40 60 60 1000 200 Strategy A 70 50 90 Banana Inc. 400 70 300 Strategy B 40 80 100 90 150 80 Strategy CQuick Lesson in Game Theory A Nash Equilibrium is an outcome in which neither player is better off by changing their strategy. 2.7 Is a Dominant Strategy equilibrium also a Nash equilibrium? a) Yes b) No The Ice Cream Guys $3.99 $4.99 Chucky's Chunky CCT: $20,000 $3.99 ICG: $20,000 CCT: $60,000 ICG: $10,000 CCT: $10,000 $4.99 ICG: $60,000 CCT: $40,000 ICG: $40,000 Treats The table above is the payoff matrix for the annual profit of the only two ice-cream-truck firms operating in Beach City. They are deciding the price of an ice cream cone. 2.8 What is Chucky's dominant strategy? a) $3.99 b) $4.99 c) Not enough information 2.9 What is the dominant strategy equilibrium in this situation? a) Both charge $3.99 b) Both charge $4.99 c) CCT charges $3.99 and ICG charges $4.99 d) CCT charges $4.99 and ICG charges $3.99 2.10 Suppose these two firms engaged in collusion (which, of course, totally doesn't happen because it is against the law). Which outcome would they agree upon, if any? a) Both…