Suppose Yakov and Ana are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Yakov chooses Right and Ana chooses Right, Yakov will receive a payoff of 6 and Ana will receive a payoff of 6. Yakov Loft Right Left 2,3 3,7 Ana Right 4,4 6,6 The only dominant strategy in this game is for to choose The outcome reflecting the unique Nash equilibrium in this game is as follows: Yakov chooses and Ana chooses

Suppose Yakov and Ana are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Yakov chooses Right and Ana chooses Right, Yakov will receive a payoff of 6 and Ana will receive a payoff of 6. Yakov Loft Right Left 2,3 3,7 Ana Right 4,4 6,6 The only dominant strategy in this game is for to choose The outcome reflecting the unique Nash equilibrium in this game is as follows: Yakov chooses and Ana chooses

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please write your answer as precise as possible. Long answers are not necessary. Consider the oil production of OPEC. We simplify the situation to only two countries' case. Each action in the payoff matrix represents the amount of oil produced by each player. For example, "small" means a small amount of crude oil is produced; “large" means a large amount of crude oil is produced. The payoff pairs in the table represent each country's profit, respectively. For example, "Very high profit, Very low profitť" pair in the bottom left cell denotes a pair of payoffs that Iran gets "Very high profit", and Saudi Arabia gets “Very low profit". Saudi Arabia Small Large Small High profit, High profit Very low profit, Very high profit Iran Large Very high profit, Very low profit Low profit, Low profit *Note: Very high profit > High profit > Low profit >Very low profit What outcome (Nash equilibrium) of this game between two countries would you predict? Use your answer to explain why OPEC has failed…
Two roommates John and Joe are playing a simultaneous game of cleaning the apartment. If neither of them clean, the apartment gets filthy and both get a utility of 2. If John cleans and Joe doesn’t, John gets a utility of 1 and Joe gets a utility of 4. If Joe cleans and John doesn’t, Joe gets a utility of 1 and John gets a utility of 4 and if both clean up the apartment, they each get a utility of 3.What is the Nash equilibrium of this game? Group of answer choices Joe cleans, John doesn’t John cleans, Joe doesn’t Both of them clean the apartment Neither of them clean the apartment
In the game shown below, Player 1 can move Up or Down, and Player 2 can move Left or Right. The players must move at the same time without knowledge of the other player’s move. The first payoff is for the row player (Player 1) and the second payoff is for the column player (Player 2). Solve each game using game theoretic logic. Player 2 Player 1 Left Right Up 7, 7 2, 9 Down 9, 2 1, 3
Please help with #2
Please help with #1
Consider a beauty-contest game in which n players simultaneously pick a number between zero and 100 inclusive; the person whose number is closer to half of the average number wins a prize. What is the unique Nash equilibrium of this game? What number will a level-3 thinker pick?
Consider the following situation. Maipo and Pisco need to decide how to divide a cake between the two of them. Both like cake and want to get as much cake as they can. They decide to let Maipo cut the cake first and then Pisco gets to pick which piece he wants. For simplicity, assume that Maipo can only cut the cake in two ways: He can either divide it into two pieces that are equal size (i.e., both will get half the cake) or he can divide the cake into two pieces where one piece is twice the size of the other (i.e., one will get a piece that is two-thirds of the cake and the other will get a piece that is one-third of the cake). Set up this game as a sequential game and draw the game tree that represents it Note: You can either draw the game tree by hand and then photograph/scan the tree and paste it into the assignment or use the drawing tool in Word to draw the tree. Find the sub-game perfect Nash Equilibria to this game. Underline the strategies or highlight the…
Cameron and Luke are playing a game called ”Race to 10”. Cameron goes first, and the players take turns choosing either 1 or 2. In each turn, they add the new number to a running total. The player who brings the total to exactly 10 wins the game. a) If both Cameron and Luke play optimally, who will win the game? Does the game have a first-mover advantage or a second-mover advantage? b) Suppose the game is modified to ”Race to 11” (i.e, the player who reaches 11 first wins). Who will win the game if both players play their optimal strategies? What if the game is ”Race to 12”? Does the result change? c) Consider the general version of the game called ”Race to n,” where n is a positive integer greater than 0. What are the conditions on n such that the game has a first mover advantage? What are the conditions on n such that the game has a second mover advantage?
Hello, please help me to solve this Game Theory question. Thanks in advance! Hobby hunter Jack decides what to do the next weekend. He can either stay at home and watch movies (Movies), or call his friend Katherine to go hunting (Hunt). If he stays in, both Jack and Katherine get a payoff of 2. If he decides to hunt, he knows the situation with his friend will resemble a classic stag hunt game with simultaneous moves: Hunting a stag is better than hunting a rabbit, but it only works if they cooperate. The hunting subgame is captured as: Katherine Stag Rabbit Jack Stag 3 , 3 0 , 1 Rabbit 1 , 0 1 , 1 1. Write the normal form representation of the full game, including Jack’s initial decision.2. Identify any pure-strategy Nash equilibria. How does this compare to the pure strategy Nash equilibria of the hunting game alone?
Consider the following sequential-move game: This game involves three players, each making sequential decisions. The game proceeds as follows: • Player 1 initiates the game by choosing between two actions: Left and Right. • Depending on Player 1's choice, Player 2 then decides, choosing between two actions, left (I) and right (`r`). • Finally, Player 3 makes the last move in the sequence, choosing between actions `a` and `b`. The payoffs are determined by the sequence of choices made by all three players. Each payoff is represented by the triplet (x,y,z), where x, y, and z denote the payoffs for Player 1, Player 2, and Player 3, respectively. For example, if Player 1 chooses 'Left', Player 2 chooses 'I', and Player 3 chooses `a` the resulting payoff would be (3,1,2). This indicates that Player 1 receives a payoff of $3, Player 2 receives a payoff of $1, and Player 3 receives a payoff of $2 for this particular sequence of actions. Left Player 2 Player 1 Right Player 2 Player 3 Player 3…
Exercise 3.12. Three players, Avinash, Brian and John, play the following game. Two cards, one red and the other black, are shuffled well and put face down on the table. Brian picks the top card, looks at it without showing it to the other players GAME THEORY - Giacomo Bonanno 124 (Avinash and John) and puts it back face down. Then Brian whispers either "Black" or "Red" in Avinash's ear, making sure that John doesn't hear. Avinash then tells John either "Black" or "Red". Finally John announces either "Black" or "Red" and this exciting game ends. The payoffs are as follows: if John's final announcement matches the true color of the card Brian looked at, then Brian and Avinash give $2 each to John. In every other case John gives $2 each to Brian and Avinash. (a) Represent this situation as an extensive-form game. (b) Write the corresponding strategic form (or normal form) assuming that the players are selfish, greedy and risk neutral.