Consider a game with two players, L={1,2}, with actions S₁=S2={Bear, Ninja, Warrior,Hunter }. The Bear (B) beats Ninja (N), Ninja ties with Warrior (W), Warrior loses to Hunter (H),Hunters beats Bear, Bear loses to Warrior, Ninja beats Hunter, and every action ties with itself. A wingives a player a payoff equal to 1, lose gives -1, and a tie gives a payoff equal to 0. The normal-formrepresentation takes the following form:1,2BNWHB0,01, −1−1,1−1,1N−1,10,00,01,-1W1,-10,00,0-1,1H1,-1-1,11,-10,0Which of the following statements is true?There is no Nash equilibrium of this game.There are infinitely many Nash equilibria.We cannot say whether there is a Nash equilibrium or Nash equilibria.There is a unique Nash equilibrium in which each player mixes between all actions with equalprobability.There is a mixed-strategy Nash equilibrium of this game in which W and N are played with equalprobability.

The statement that is true is:"There is a mixed-strategy Nash equilibrium of this game in which W…

Answered: Consider a game with two players, L =…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Table 9-03. Suppose you are a general in the army. Your country is at war. You are trying to invade the enemy. You can attack on the enemys east coast or the west coast. The enemy has only enough troops to defend one coast. The payoff matrix below represents whether you or the enemy wins (represented by 1) or loses (represented by 0). Enemy Defend east coast Defend west coast Enemy: 1 Enemy: 0 Attack east coast You: 0 You: 1 You Enemy: 0 Enemy: 1 Attack west coast You: 1 You: 0 Refer to Table 9-03. To win the war, O a. you must attack the west coast, only if you have credible information that the enemy is defending the east coast. O b. you must attack the west coast, and information about whether the enemy is defending the east or the west coast is irrelevant to you. c. you must attack the west coast, only if you have credible information that the enemy is defending the west coast. d. you must never attack the west coast, and information about whether the enemy is defending the east or…
Consider the following game - one card is dealt to player 1 ( the sender) from a standard deck of playing cards. The card may either be red (heart or diamond) or black (spades or clubs). Player 1 observes her card, but player 2 (the receiver) does not - Player 1 decides to Play (P) or Not Play (N). If player 1 chooses not to play, then the game ends and the player receives -1 and player 2 receives 1. - If player 1 chooses to play, then player 2 observes this decision (but not the card) and chooses to Continue (C) or Quit (Q). If player 2 chooses Q, player 1 earns a payoff of 1 and player 2 a payoff of -1 regardless of player 1's card - If player 2 chooses continue, player 1 reveals her card. If the card is red, player 1 receives a payoff of 3 and player 2 a payoff of -3. If the card is black, player 1 receives a payoff of 2 and player 2 a payoff of -1 a. Draw the extensive form game b. Draw the Bayesian form game
Question 2. Two students are working together to submit their Microeconomics mid-semester group coursework. Each student i can put in the effort x; that costs c(x;), in which x; E [0, 1]. This gives each student the utility of u(x1, x2). Formu- late this situation as a strategic game.
Jane is interested in buying a car from a used car dealer. Her maximum willingness to pay for thecar is 12 ($12,000). Bo, the dealer, is willing to sell the car as long as he receives at least 9($9,000). What is the Nash bargaining solution to this game?
The US and Canada have overfished North Atlantic cod stocks nearly to the point of extinction. Both countries wish to preserve the cod industry (and hence the cod stocks), so the two countries sign an agreement to limit fish hauls. Each country has two possible strategies: comply with the agreement (limit fishing) or renege on the agreement (overfish). Each country’s payoffs for different strategy combinations are given in the matrix below. The numbers in the cells represent utilities, and the payoff ordering is (US, Canada). QUESTIONS: 1.If this is a one-shot game (i.e., it is played once), do the players have a dominant strategy? If so, what is it? Briefly explain your answer. 2.What is the equilibrium of this game? Is it Pareto-optimal? How do you know?
“To be or not to be, that is the question.” Imagine that in answering this question Hamlet had the following data to consider. Hamlet must choose either “To Be” or “Not to Be.” If Hamlet chooses “To Be” then his enemy the King will make a decision to either “Kill” Hamlet or let him “Live.” If Hamlet is killed by the King his payoff in this game is 200 since he will have been killed by the King who is his uncle and who also killed Hamlet’s father, the King’s brother, who was the prior king. If the King decides to let Hamlet Live then Hamlet will be able to avenge his father’s death and his payoff will be +300. Hamlet also considers suicide an option but given the uncertainty of the afterlife if he chooses not to be then his payoff is +100 since his doesn’t what the afterlife holds for one who kills himself. Draw the complete game tree for this situation. Be sure to accurately label the tree and include the payoffs. Assume Hamlet will choose the course of action that offers the highest…
There is a city, which looks like chopped isosceles triangle, as shown below. Citizens live uniformly distributed all over the city. Two ice-cream vendors, A and B, must independently set up stores in the city. Each citizen buys from the vendor closest to their location and when equidistant from both vendors they choose by coin toss. Each vendor’s aim is to maximize the expected number of customers. A choice of location by the two vendors is a Nash equilibrium if no vendor can do better by deviating unilaterally. Does this game have a Nash equilibrium? If so, describe it. If not, explain why not
= a) Suppose x 4 and y = 3. After all strategies that are dominated by a pure strategy are iteratively deleted for both players, how many strategies remain for Player 1? b) Suppose x = 4 and y = 3. After all strategies that are dominated by a pure strategy are iteratively deleted for both players, how many strategies remain for Player 2? c) Suppose x = 4 and y = 3. What is the sum of both players' payoffs in all pure strategy Nash equilibria of the game? d) Suppose x = 4 and y = 11. After all strategies that are dominated by a pure strategy are iteratively deleted for both players, how many strategies remain for Player 1? e) Suppose x = 4 and y = 11. After all strategies that are dominated by a pure strategy are iteratively deleted for both players, how many strategies remain for Player 2? f) Suppose x = 4 and y = 11. What is the sum of both players' payoffs in all pure strategy Nash equilibria of the game?
Consider the following 3-player static game with row player Batman (his choices are a and b), column player Catwoman (her choices are c and d), and matrix player Joker (his choices are left, middle and right). In the payoff triples the first entry is Batman's payoff, the second entry is Catwoman's payoff, and the third entry is Joker's payoff. left middle right d d d a 1,1,5 1,0,1 a 1,1,3 1,0,0 a 1,1,0 1,0,0 0,0,0 0,1,0 0,0,0 0,1,3 b 0,0,0 0,1,5 (a) Give a belief for Joker about his opponents' choice combinations that supports his choice of middle (i.e. such that middle is optimal for him). (b) Solve the game with iterated strict dominance. (c) Construct an epistemic model such that, for every choice found in (b) there exists a type such that: • the choice is optimal for the type, • and the type expresses common belief in rationality.
Write the game below in normal form and find all Nash equilibria. C 2. Write the game below in normal form and find all Nash equilibria. जल P = 1/1535 Nature ताल P = 1/3 P1 A (3,6) P1 B P2 B C2 P2 Pz Pz (0,3) ✓ (9,0) (3,3) ✓ (0, 6) (-3,3) ✓ (9,6) Х (3,0) (-3, 12)

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