Game theory- please help. hondustion zhinpherThree television stations, (KAC, KBC, KCC) in Oshkosh Wisconsin compete foraudience market-share. All three stations can air their late-evening news at 10pm or at 11 pm. The following is a normal-form expression of that game (the payoffsare in the order (KAC, KBC, KCC); you may assume the stations make their choicessimultaneously. Restrict you answer to pure strategies.FIND THE RATIONIZABLE SET (USE ITERATED DOMINANCE).KCCIlpm1 pmKAC/ABC 10pm | 1pm10pm 1624,30 30,16,24Il pm 30,23,14|14,24,32KAC/KBC10pm 11 pm|O pm14.24, 32 8.30,27Il pm/30,16,24 13,12, 5O

Answered: Three television stations, (KAC, KBC,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Game theory- please help.

hon
dustion z
hinpher
Three television stations, (KAC, KBC, KCC) in Oshkosh Wisconsin compete for
audience market-share. All three stations can air their late-evening news at 10
pm or at 11 pm. The following is a normal-form expression of that game (the payoffs
are in the order (KAC, KBC, KCC); you may assume the stations make their choices
simultaneously. Restrict you answer to pure strategies.
FIND THE RATIONIZABLE SET (USE ITERATED DOMINANCE).
KCC
Ilpm
1 pm
KAC/ABC 10pm | 1pm
10pm 1624,30 30,16,24
Il pm 30,23,14|14,24,32
KAC/KBC
10pm 11 pm
|O pm
14.24, 32 8.30,27
Il pm/30,16,24 13,12, 5O

Definition Definition Economic decision-making framework that analyzes how different players optimize their outcomes with given pay-offs corresponding to their available strategies. The assumptions of game theory are: The number of players or competitors are finite/limited; All participants are rational The rules of the game are known to every player; and Each participant has a finite set of actions. A common way in which game theory is presented as an ( m x n ) matrix in which m represents the strategies of row player and n represents the strategies of column player. There are several limitations of game theory: Many businesses have a large number of competitors, and selecting an optimal strategy in these circumstances is difficult; Real-life business operating environments are full of uncertainty and difficult to model as a game theory; and The assumption of rationality and utility maximization isn't always an accurate portrayal of human nature.

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