Three voters vote over two candidates (A and B), and each voter has two pure strategies: vote for A and vote for B. When A wins, voter 1 gets a payoff of 1, and 2 and 3 get payoffs of 0; when B wins, 1 gets 0 and 2 and 3 get 1. Thus, 1 prefers A, and 2 and 3 prefer B. The candidate getting 2 or more votes is the winner (majority rule). Find a weakly dominant strategy. Compute for the pure strategy Nash equilibrium.

Three voters vote over two candidates (A and B), and each voter has two pure strategies: vote for A and vote for B. When A wins, voter 1 gets a payoff of 1, and 2 and 3 get payoffs of 0; when B wins, 1 gets 0 and 2 and 3 get 1. Thus, 1 prefers A, and 2 and 3 prefer B. The candidate getting 2 or more votes is the winner (majority rule). Find a weakly dominant strategy. Compute for the pure strategy Nash equilibrium.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Refer to the accompanying game. Firm A Firm B Low Price High Price Low Price (10,9) (15,8) High Price (−10,7) (11,11) What are the secure strategies for firm A and firm B, respectively?
Can you help me with the question below? What is [are] the Nash Equilibrium [Equilibria] of this game? A) (10;10) and (20;20) B) (30;30) C) (10;20) and (20;10) D) (20;20) E) (30;30)
Two discount stores (Megastore and Superstore) are interested in expanding their market share through advertising. The table below depicts the strategic outcomes (profits) of both stores with and without advertising. Superstore - Advertise Superstore - Don't Advertise Megastore - Advertise $95, $80 $305, $55 Megastore - Don't Advertise $65, $285 $165, $115 When the game does reach Nash Equilibrium, the payoffs for both stores will be a) Megastore $95 and Superstore $80 b) Megastore $305 and Superstore $55 c) Megastore $65 and Superstore $285 d) Megastore $165 and Superstore $115
Up Down Up Up Down Down Player 1 Player 2 In the game above, what is/are the EFFICIENT sub-game perfect Nash equilibrium? (up,up) (up,down) (down, up) (down, down) No EFFICIENT equilibrium exists P1 gets $45 P2 gets $155 P1 gets $100 P2 gets $10 P1 gets $85 P2 gets $85 P1 gets $95 P2 gets $95
What does a payoff matrix illustrate? A tit-for-tat strategy in repeated games. The possible outcomes of various strategies in game theory. The most efficient production level in noncooperative games. The optimal profit maximization strategy in Nash equilibrium.
Which of the following concepts of equilibrium in game theory always exists under the assumption ofexpected utility maximization? (A) dominant strategy equilibrium; (B) iterated dominance equilibrium ; (C) Nash equilibrium in mixed strategies; (D) Nash equilibrium in pure strategies.
Determine all of the Nash equilibria (pure-strategy and mixed-strategy equilibria) of the following game: