Name: 1. Consider the following simultaneous move game: a. 2.5 4 Row Top Up Down Bottom N 16xe mszbiM Left 5,5 2,6 3,1 3,5 Column Center 8,4 10,1 5,4 9,7 Middle (6,6 2,4 3,3 4,5 Right 5,4 2,4 16 3,4 20hunini 02:hobe Use the method of iterated elimination of dominated strategies to eliminate as many strategies as possible for each player. Briefly explain your steps. (4 marks) 26 5100W sed mexa pm/ ebul b. Using the method of best responses, find the Nash Equilibrium of this game. Mark the best response on the matrix and circle the NE. Briefly explain why this is a NE. (4 marks) anatibunenk c. Consider the outcome (Bottom, Center), briefly explain why this is NOT a Nash Equilibrium. (2 marks)
Name: 1. Consider the following simultaneous move game: a. 2.5 4 Row Top Up Down Bottom N 16xe mszbiM Left 5,5 2,6 3,1 3,5 Column Center 8,4 10,1 5,4 9,7 Middle (6,6 2,4 3,3 4,5 Right 5,4 2,4 16 3,4 20hunini 02:hobe Use the method of iterated elimination of dominated strategies to eliminate as many strategies as possible for each player. Briefly explain your steps. (4 marks) 26 5100W sed mexa pm/ ebul b. Using the method of best responses, find the Nash Equilibrium of this game. Mark the best response on the matrix and circle the NE. Briefly explain why this is a NE. (4 marks) anatibunenk c. Consider the outcome (Bottom, Center), briefly explain why this is NOT a Nash Equilibrium. (2 marks)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:Name:
1. Consider the following simultaneous move game:
a.
2.5
4
Row
Top
Up
Down
Bottom
N
16xe mszbiM
Left
5,5
2,6
3,1
3,5
Column
Center
8,4
10,1
5,4
9,7
Middle
(6,6
2,4
3,3
4,5
Right
5,4
2,4
16
3,4
20hunini 02:hobe
Use the method of iterated elimination of dominated strategies to eliminate as many strategies as
possible for each player. Briefly explain your steps. (4 marks)
26 5100W
sed mexa
pm/
ebul
b. Using the method of best responses, find the Nash Equilibrium of this game. Mark the best response on
the matrix and circle the NE. Briefly explain why this is a NE. (4 marks)
anatibunenk
c. Consider the outcome (Bottom, Center), briefly explain why this is NOT a Nash Equilibrium. (2 marks)
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