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Consider the following two-player game: P2 L R U 0,4 3, 2 P1 D 2. 1 1,6 1. Draw the expected utility graphs for each player. (10 points) 2. Identify ALL the Nash equilibrium of this game. Illustrate your answer by a clearly labeled best response graph, with P1's strategy space on the x-axis. (10 points) 3. Using the above 2×2 game, construct a 3×3 game such that only one strategy is dominated and no strategy is dominated by a pure strategy. (15 points)

Consider the following two-player game: P2 L R U 0,4 3, 2 P1 D 2. 1 1,6 1. Draw the expected utility graphs for each player. (10 points) 2. Identify ALL the Nash equilibrium of this game. Illustrate your answer by a clearly labeled best response graph, with P1's strategy space on the x-axis. (10 points) 3. Using the above 2×2 game, construct a 3×3 game such that only one strategy is dominated and no strategy is dominated by a pure strategy. (15 points)

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter8: Game Theory
Section: Chapter Questions
Problem 8.5P
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Consider the following two-player game: P2 L R U 0,4 3, 2 P1 D 2. 1 1,6 1. Draw the expected utility graphs for each player. (10 points) 2. Identify ALL the Nash equilibrium of this game. Illustrate your answer by a clearly labeled best response graph, with P1's strategy space on the x-axis. (10 points) 3. Using the above 2×2 game, construct a 3×3 game such that only one strategy is dominated and no strategy is dominated by a pure strategy. (15 points)
Transcribed Image Text:Consider the following two-player game: P2 L R U 0,4 3, 2 P1 D 2. 1 1,6 1. Draw the expected utility graphs for each player. (10 points) 2. Identify ALL the Nash equilibrium of this game. Illustrate your answer by a clearly labeled best response graph, with P1's strategy space on the x-axis. (10 points) 3. Using the above 2×2 game, construct a 3×3 game such that only one strategy is dominated and no strategy is dominated by a pure strategy. (15 points)
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