Consider the game in the table below. Does Firm A have a strictly dominant strategy? Enter 111 for YES, 222 for NO and 999 for UNCERTAIN Firm A Right 9,14 7,9 Left Up Firm B 7,5 3,14 Down 222
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- In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second. GAME 33 Player A Player B B1 10, 12 A1 A2 9,3 A3 8, 10 In Game 33 above, B2 B3 8,8 12, 10 7,6 11, 1 9,4 14, 3 B1 is a dominated strategy for Player B B2 is a dominated strategy for Player B B3 is a dominated strategy for Player B Player B has no dominated strategies.Question 29 Firm B Q = 3 Q= 4 Firm A Q = 3 16,16 12,18 Q = 4 18,12 13,13 The Nash equilibrium in this game is Q = 4 for firm A and Q = 3 for firm B. %3D Q = 3 for firm A and Q = 3 for firm B. %3D Q = 3 for firm A and Q = 4 for firm B. %3D Q = 4 for firm A and Q = 4 for firm B.O Macmillan Learning McLaren and Red Bull are competing for the Formula One Constructors' Championship and are deciding whether to increase their spending on their aerodynamic (aero) development. The matrix displays the payoffs to the team that result from each possible choice. Note that, due to other factors, the payoffs are not symmetrical. Assume that each team's goal is to earn as many points as possible. a. Does McLaren have a dominant strategy? If so, what is it? O Yes. Their dominant strategy is to leave aero development spending unchanged. O Yes. Their dominant strategy is to increase aero development spending. O No, they do not have a dominant strategy. b. Does Red Bull have a dominant strategy? If so, what is it? O Yes. Their dominant strategy is to increase aero development spending. Yes. Their dominant strategy is to leave aero Red Bull Raise spending Do not change spending McLaren Increase spending Do not change spending McLaren earns 142 points McLaren earns 360 points…
- Consider a bankruptcy game with two risk neutral players where V =$800,000, C1= $300,000 and C2=$800,000. a) What is the Nash bargaining solution?Refer to the following payoff table: Firm A's Advertising Budget Multiple Choice Low O Medium High Firm A High Firm A High A Firm B Medium D G Low $900, $900 $1,000 $800 Firm B's Advertising Budget Medium B E H $820, $1,220 $950, $1,025 $875, $920 $800, $875 After the first round of elimination, are there any dominant strategies? If so, which one(s)? C Neither firm has a dominant strategy after the first round. F High $1,060, $1,100 $1,040, $1,000 $1,025, $1,175◄ Search 12:47 PM Sun Nov 12 ← Note Nov 12, 2023 Uptown's price strategy The Nash equilibrium occurs when High Low LED RareAir's price strategy High $12 $15 The more favorable outcome would be for $12 Tt ✪ $6 B Low $6 D $8. $15 $8 S O both firms have an incentive to deviate from this strategy given the strategy of the competing firm. It is shown by the dominant strategy of cell A. 92% neither firm has an incentive to deviate from this strategy given the strategy of the competing firm. It is shown by the dominant strategy of cell D. O one firm consistently has an incentive to deviate from this strategy given the strategy of the competing firm. It is shown by the high-price strategy of cell B. O one firm consistently has an incentive to deviate from this strategy given the strategy of the competing firm. It is shown by the high-price strategy of cell C. O the firms to collude and use the high-price strategy but this strategy requires cooperation. O one firm to take the lead and let the…
- Consider the following 2-player normal form game. Player 2 Bananas Orange Player 1 Grapes 11, 3 8, 2 Apple 9, 7 6, 5 Player 1's dominant strategy is [Select ] and Player 2's dominant strategy is [ Select ) The Nash Equilibrium of this game is ( Select ) (select all that apply).1. Consider the following game matrix. Player A Answer: Top Bottom Left a, b e, f Player B Right c, d g, h (a) If top and left are strictly dominant strategies, then what do we know the relationship of the parameters? (b) If (top, left) is a Nash equilibrium, then what do we know the relationship of the parameters? Answer: (c) If top and left are strictly dominant strategies, will (top, left) be a Nash equilibrium? Why? Answer: (d) If (top, left) is a Nash equilibrium, must the strategies be strictly dominant strategies? Why? Answer:2. Consider an infinitely repeated game in which, in each period, two firms with zero costs choose quantities and prices are given by: p1 = 1 - q1 - q2/2, p2 = 1 - q2 - q1/2. Firms have a common discount factor of 8 = 1/2. a) Explain what a trigger strategy is and determine whether the firms can attain the joint profit maximising outcome in a subgame perfect equilibrium using trigger strategies. b) Explain what a stick and carrot strategy is and discuss whether it is possible to attain the joint-profit maximising outcome in a subgame perfect equilibrium using stick and carrot strategies.
- Consider a bankruptcy game with two risk-neutral players where V = $600,000, C1 = $400,000, and C2 = $800,000. What is the Nash bargaining solution?Consider the payoff matrix below, which describes a symmetric A B A 17,17 0,14 B 14,0 8,8 (a) Find all Nash equilibria of this game, including any mixed strategy equilibria. (b) Draw the expected payoff difference diagram for this game, including all the Nash equilibria you found in (a). is (c) What would you expect to occur most frequently when this game played as a lab experiment? Justify your answer using your answers from (a) and (b).Consider the game in the table below. Does Firm A have a strictly dominant strategy? Enter 111 for YES, 222 for NO and 999 for UNCERTAIN Firm A Left Right 7,7 10,12 Firm B Up Down 3,16 5,8 1