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?
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
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter15: Strategic Games
Section: Chapter Questions
Problem 3MC
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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 ?
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