Question is in the attachment section. Thank you in advance for your answer. • Find the Nash equilibria of the following extensive-form game.• Is there any Nash equilibrim with incredible threat?Firm 1High PriceLow PriceFirm 2HighPriceFirm 2LowHighPriceLowPricePrice35.1$4 5,2525,is45.0s

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Managerial Economics: A Problem Solving Approach

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Chapter16: Bargaining

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Question

Question is in the attachment section. Thank you in advance for your answer.

• Find the Nash equilibria of the following extensive-form game.
• Is there any Nash equilibrim with incredible threat?
Firm 1
High Price
Low Price
Firm 2
High
Price
Firm 2
Low
High
Price
Low
Price
Price
35.1$
4 5,25
25,is
45.0s

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on 8.1 Consider the following game: Player 1 A C D 7,6 5,8 0,0 Player 2 E 5,8 7,6 1, 1 F 0,0 1,1 4,4 a. Find the pure-strategy Nash equilibria (if any). b. Find the mixed-strategy Nash equilibrium in which each player randomizes over just the first two actions. c. Compute players' expected payoffs in the equilibria found in parts (a) and (b). d. Draw the extensive form for this game.
5. The following problem was first considered by John von Neumann and is a fundamentalresult game theory.A and B play the following game:A writes down either number 1 or number 2, and B must guess which one.If the number that A has written down is i and B has guessed correctly, B receives i units from A.If B makes a wrong guess, B pays 4/5 of a unit to A.First we consider the expected gain of player B.Suppose B guesses 1 with probability p and 2 with probability 1 −p.Let X1 denote B’s gain (or loss) in a game where A has written down 1.Let X2 denote B’s gain (or loss) in a game where A has written down 2.(a) Find the pmf of X1 and X2(b) Find B’s expected gain for these two cases, E[X1] and E[X2].(c) What value of p maximizes the minimum possible value of B’s expected gain?Now consider the expected loss of player ASuppose that A writes down 1 with probability q and 2 with probability 1 −q.Let Y1 be A’s loss (or gain) if B chooses number 1.Let Y2 be A’s loss (or gain) if B…
L 0 4 15.1 X₂ A M R 0 1 4 0 2 B L 4 0 с X3 M R 0 1 3 FIGURE 15.5 Exercise 15.1. Equilibrium Selection: Consider the extensive-form game in Figure 15.5. a. Find all the Bayesian Nash equilibria of this game. b. Which of the Bayesian Nash equilibria are also perfect Bayesian equi- libria? Why?
subquestion d, e, f
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Consider the attached game depicted in Normal Form. Find one Nash equilibrium and verify that it is a Nash equilibrium. Note: 1. Remember to express the Nash equilibrium in the form of a strategy profile. 2. Use the definition of Nash equilibrium to verify that the strategy profile you find is really a Nash equilibrium.
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3. Nash Equilibria Consider the following (normal-form) game. Compute a Nash Equilibrium of this game. U C D L | M R 5,0 1,3 4,0 2,4 1,4 3,5 0,1 1,0 5,0
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