Question 1. Apply the IESDS algorithm to the following game (remember to state the relevant domi-nance relation and to redraw the payoff matrix after each elimination):Player 2XYZA6,43, 17,4Player 1B4,32, 84,0C0, 14, 44,45, 6

The Iterated Elimination of Strictly Dominated Strategies (IESDS) algorithm is a method used in game…

Answered: Question 1. Apply the IESDS algorithm…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4) Consider the following payoff matrix: Player 1 Strategy A Strategy B c) Is the payoff matrix symmetric? Player 2 Strategy A Strategy B (0,0) (7,4) (2,2) (3,3) a) Does either player have a dominant strategy? b) Is there one or more Nash Equilibrium? 1
Question: Determine the set of rationalizable strategies for each of the following games. Player 2 Player 2 (0, 4) (3, 3) (4, 0) Player 2 (2,0) (3, 4) (1,3) (4, 2) (2, 3) (4,0) (3, 3) (0, 4) (1,1) Player 1 Player 1 (1,2) (0,2) | (3,0) Player 2 D D (5, 1) | (0, 2) | Player 1 (4, 6) (3, 5) (6, 3) (0, 1) (2,1) Player 2 (8, 6) (1,0) (0,8) (8, 2) (0, 1) (2, 6) (5, 1) (4, 4) (1,0) Player 1 (6,0) (2,8) D D Player 2 (8, 10) (6, 4) (2, 2) (0,0) (0,0) (3,3) (4, 1) (8, 5) Player 1 Player 1 B B Player 2 Player 2 (8, 10) (6, 4) (3, 10) (6, 4) (4, 1) (8, 5) (4, 1) (8, 5) Player 1 A Player 1 B B
Question 16 Consider the following Extended Form Game: A' (9,5) O {(A,B), (A', B')} A P2 B' 'A' O {(B,B), (A', B')} P1 (5,2) (8,5) B A (1,6) P2 B' P1 B What is the Subgame Perfect Nash Equilibrium? (6,7) O {(A,A), (A', A)),((A,B), (A', A')), ((A,A), (A', B')).((A,B), (A', B'))} O (((B,A), (A', A')).((B,B), (A', A')), ((B,A), (A', B')), ((B,B), (A', B'))}
Question 5 Which of the following scenarios describe strategic decision-making that is consistent with a prisoners' dilemma game? I) Two individuals share access to a lake where the stock of fish is declining due to the total amount of fishing taking place. II) At an orchard, fruit pickers are formed into teams of two individuals and each individual is paid based on the amount of fruit picked by the team. III) Two competing electronic device manufacturing companies must decide on whether to use USB3 or USB-C charging cables in their products. If they use the same charging technology, the market grows quickly for both firms, but if they choose different technologies, the market grows more slowly. IV) Two neighbouring properties in Texas are located above a single underground reservoir of oil. The owner of each property drills to extract the oil, knowing that if the overall rate of extraction is too fast, air pockets will prevent some oil from being extracted. All scenarios Scenarios I,…
Use the following payoff matrix for a simultaneous-move, one-shot game to answer the accompanying questions. Player 2 D E 7, 20 7, 11 Strategy C F 6, 14 12, 5 10, 19 16, 17 Player 1 B. 15, 1 18, 5 a) What is Player l's optimal strategy? Why? b) Determine Player l's equilibrium payoff.
Player 1 3 Up 0 Down Player 2 Left 4,38 0,0 Right -1,-1 Refer to the payoff matrix above. How many Nash Equilibriums this game has? 01 3,4
(c) Consider the following two-player, zero-sum game: Y1 Y2 X1 -2 8 X2 10 -5 What is the outcome of this game?
In the game presented in Table, what are the Nash equilibrium strategies for players A and B?
3
Question 3. Consider the following game, and calculate the following: Player 2 X | Y | Z A 1, 3 1,7 5, 2 B 2, 2 -3, 5 2,0 C 5, -4 6, 0 9,-1 Player 1 Q3)a) All Dominance Relations: Q3)b) Strictly Dominated Strategies: Q3)c) Strictly Dominant Strategies: Q3)d) Rational Outcome: ....

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Question 1. Apply the IESDS algorithm to the following game (remember to state the relevant domi- nance relation and to redraw the payoff matrix after each elimination): Player 2 X Y Z A 6,4 3, 1 7,4 Player 1 B 4,3 2, 8 4,0 C 0, 1 4, 4 4,4 5, 6