Consider the following game: Column Player Column Player L Row Player U 1,3 Row Player D 4,1 R 3, 2 2,4 (i) Find all pure Nash equilibria of the above one-shot, simultaneous game, if any. (ii) What is the subgame perfect equilibrium if you turn this into a sequential game, with Column going first? With Row going first? (iii) In which game does Column get the highest payoff-the simultaneous game, the sequential game when Column goes first, or the sequential game when Column goes second?

Consider the following game: Column Player Column Player L Row Player U 1,3 Row Player D 4,1 R 3, 2 2,4 (i) Find all pure Nash equilibria of the above one-shot, simultaneous game, if any. (ii) What is the subgame perfect equilibrium if you turn this into a sequential game, with Column going first? With Row going first? (iii) In which game does Column get the highest payoff-the simultaneous game, the sequential game when Column goes first, or the sequential game when Column goes second?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A 201.

Consider the following game:
Column Player Column Player
L
Row Player U 1,3
Row Player D 4,1
R
3, 2
2,4
(i) Find all pure Nash equilibria of the above one-shot, simultaneous game, if any.
(ii) What is the subgame perfect equilibrium if you turn this into a sequential game, with Column going first? With Row going first?
(iii) In which game does Column get the highest payoff-the simultaneous game, the sequential game when Column goes first, or the
sequential game when Column goes second?

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