In the normal form game below, the payoff matrix depends on the parameter a. 1 1 2 A B C a 0,2 6,4 -2,4 b 0,-24 -2a, 2a 8,2 C 4,0 0,4 0, 14 Find the values of a, for which at least one pure strategy Nash equilibrium exists. Compute the value of a for which the expected payoff is the same for both players when the mixed strategy profile (01,02) = ((1/3,2/3,0), (0,1/4,3/4)) is played. Find the best response of player 1 (as a function of the parameter a) to player's 2 mixed strategy o2 = (1/2,1/2,0). Assuming a = 0 eliminate iteratively all dominated strategies and find a mixed strategy Nash equilibrium in this game.
In the normal form game below, the payoff matrix depends on the parameter a. 1 1 2 A B C a 0,2 6,4 -2,4 b 0,-24 -2a, 2a 8,2 C 4,0 0,4 0, 14 Find the values of a, for which at least one pure strategy Nash equilibrium exists. Compute the value of a for which the expected payoff is the same for both players when the mixed strategy profile (01,02) = ((1/3,2/3,0), (0,1/4,3/4)) is played. Find the best response of player 1 (as a function of the parameter a) to player's 2 mixed strategy o2 = (1/2,1/2,0). Assuming a = 0 eliminate iteratively all dominated strategies and find a mixed strategy Nash equilibrium in this game.
Chapter1: Making Economics Decisions
Section: Chapter Questions
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
Transcribed Image Text:In the normal form game below, the payoff matrix depends on the parameter a.
1 1 2
ABC
a
0,2
6,4
-2,4
b
0, -24
-2a, 2a
8, 2
C
4,0
0,4
0, 14
Find the values of a, for which at least one pure strategy Nash equilibrium exists.
Compute the value of a for which the expected payoff is the same for both players
when the mixed strategy profile (01,02) = ((1/3,2/3,0), (0,1/4,3/4)) is played.
Find the best response of player 1 (as a function of the parameter a) to player's 2
mixed strategy o2 = (1/2,1/2,0).
Assuming a = 0 eliminate iteratively all dominated strategies and find a mixed
strategy Nash equilibrium in this game.
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