Answer all questions, show all working. Consider the following game in strategic or normal form.     A2 B2 C2 A1 1,0 1,2 -2,1 B1 6,2 0,3 2,3 C1 2,2 -2,1 2,3   Use the iterative elimination of strictly dominated strategies to reduce the game as much as possible. What is the set of rationalizable strategies for each player? What is/are Nash equilibrium(s) in this game? Explain the differences between cooperative and non- cooperative games. What are the fundamental hypotheses about the behavior of the persons in Game theory?

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
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Chapter15: Strategic Games
Section: Chapter Questions
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Answer all questions, show all working.

  1. Consider the following game in strategic or normal form.

 

 

A2

B2

C2

A1

1,0

1,2

-2,1

B1

6,2

0,3

2,3

C1

2,2

-2,1

2,3

 

  • Use the iterative elimination of strictly dominated strategies to reduce the game as much as possible.
  • What is the set of rationalizable strategies for each player?
  • What is/are Nash equilibrium(s) in this game?
  • Explain the differences between cooperative and non- cooperative games. What are the fundamental hypotheses about the behavior of the persons in Game theory?
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