Use the following payoff matrix for a simultaneous-move, one-shot game to answer theaccompanying questions.Player 2DE7, 207, 11StrategyCF6, 1412, 510, 1916, 17Player 1B.15, 118, 5a) What is Player l's optimal strategy? Why?b) Determine Player l's equilibrium payoff.

Nash equilibrium is such an equilibrium from which no player has any incentive to change it's…

Answered: Use the following payoff matrix for a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second. GAME 33 Player A Player B B1 10, 12 A1 A2 9,3 A3 8, 10 In Game 33 above, B2 B3 8,8 12, 10 7,6 11, 1 9,4 14, 3 B1 is a dominated strategy for Player B B2 is a dominated strategy for Player B B3 is a dominated strategy for Player B Player B has no dominated strategies.
Use the following payoff matrix for a simultaneous-move one-shot game to answer the accompanying questions. Player 2 Strategy C D E F Player 1 A 9, 8 14, 14 18, 25 12, 19 B 23, 13 10, 18 14, 26 19, 21 a. What is player 1’s optimal strategy? multiple choice Strategy B Strategy A Player 1 does not have an optimal strategy. b. Determine player 1’s equilibrium payoff. Prev
3.Students A and B decide whether to clean the dormitory. Regardless of whether the other party participates, the cleaning cost for each student to clean the dormitory is $ 8; and the benefit for each student from cleaning is $5 times the number of participants. (hint: if both of them clean the dormitory together, A and B benefit. If one cleans while the other does not, A and B benefit too) (a) Please use a game theory to briefly describe the above scenario, (that is to calculate the revenue for different strategies) (b) Draw the payoff matrix, find the Nash equilibrium.
a. b. Each firm has four alternative strategies, and a certain profit/payoff is associated with each strategy. The numbers in the payoff matrix denote firm A's profit (in thousands of dollars). The total amount of profit that can be earned by the two firms together is $20000. (This is called a "constant sum game.") Firm B's profit is therefore $20000 minus firm A's profit. What strategies will the two firms select? Is the game strictly determined? If so, how much does each firm gain? B's strategies A's strategies ↓ Increase Advertising Decrease Price Increase Price Alter Product Increase Advertising 0 11 8 11 Decrease Price 8 10 6 2 Increase Price 7 12 15 Alter Product 4 15 3 12 Suppose now that due to a change in consumer preferences, firm A's "Increase Price" strategy pays off better than before when firm B elects to "Decrease Price," that is, the payoff rises from 6 to 14. What strategies will the two firms now select? Is the game strictly determined? If so, how much does each firm…
9. Little Kona is a small coffee company that is consider- ing entering a market dominated by Big Brew. Each company's profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price: Little Kona Enter Don't Enter High Price Kona makes $2 million Kona makes zero Big Brew Brew makes $3 million Brew makes $7 million Kona loses $1 million Low Price Kona makes zero Brew makes $1 million Brew makes $2 million
Use the following game table to answer the question: Player 2 Y A 10, 5 6, 3 0,0 Player 1 B 2,6 1, 3 0,0 3,5 3, 4 3, 3 One of these players has a strictly dominant strategy. Which player, and what strategy is it? Player 2; Y Player 1; A Player 2; X O Player 1; B O Player 1; X
Table 8. This table shows a game played between two players, A and B. The payoffs are given in the table as (Payoff to A, Payoff to B). A Select one: Up Middle Down Left (4,2) a. Middle-Center O b. Down-Center (3, 1) (1,3) B Center (2,5) (5, 3) (4,4) Refer to Table 8. This table shows a game played between two players, A and B. The payoffs in the table are shown as (Payoff to A, Payoff to B). Which of the following outcomes represents a Nash equilibrium in the game? Right (3, 3) (5,2) (6, 1) O c. Up-Left O d. More than one of the above is a Nash equilibrium in this game.
Consider the following game tree. The players are P1 and P2. The strategies available to P1 are L, M, R. The strategies available to P2 are A and B. P1 L R M P2 (1,10) A В A B (0,0) (2,1) (0,0) (2,1)
Part 1 Sam and Ray do not like each other and will be miserable if they attend the same event. Both are going out Friday night to either the bar or a concert; and Sam will publicly tweet where he is going before Ray makes his plans. Each will get 6 payoff from going to a concert and 2 benefit from going to the bar if the other is not there. If both go to the same venue, they will get a payoff of zero. Write a game tree for this game and find the equilibrium strategy and equilibrium payoffs clearly labeling both. Part 2 Take the game from the question above and switch the order of the decisions. Write a game tree for this game and find the equilibrium strategy and equilibrium payoffs clearly labeling both. Has the equilibrium strategies and payoffs changed from the question above? Explain why.
Question > Consider the following matrix game where Player 1 moves first then Player 2 observes player 1's move and responds. Draw the game tree for the sequential move game and then determine all the Nash equilibria. Player 1 Strategy A Strategy B Strategy C Strategy D -3, -2 10, 12 9, 20 Player 2 Please show each step on how to get the answer. Thank you! Strategy E 13,7 17, 17 12, 21 Strategy F 20,8 22, 16 19, 19
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
Use the following payoff matrix for a one-shot game to answer the accompanying questions. Player 2 Strategy X Y Player 1 A 30, 30 16, -50 B -50, 16 50, 50 A. Determine the Nash equilibrium outcomes that arise if the players make decisions independently, simultaneously, and without any communication. check all that apply (16, −50) (−50, 16) (30, 30) (50, 50) Which of these outcomes would you consider most likely? multiple choice (16, −50) (50, 50) (−50, 16) (30, 30) B. Suppose player 1 is permitted to “communicate” by uttering one syllable before the players simultaneously and independently make their decisions. What should player 1 utter? multiple choice A or B What outcome do you think would occur as a result? multiple choice (−50, 16) (16, −50) (30, 30) (50, 50) c. Suppose player 2 can choose its strategy before player 1, that player 1 observes player 2’s choice before making her decision, and that this move structure is…

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Use the following payoff matrix for a simultaneous-move, one-shot game to answer the accompanying questions. Player 2 D E 7, 11 7, 20 Strategy F 6, 14 12, 5 10, 19 16, 17 Player 1 15, 1 18, 5 a) What is Player l's optimal strategy? Why? b) Determine Player l's equilibrium payoff.