V. Multiple Choices or filling the blanks (Q23-27) Given the payoff matrix, answer the following questions Bob C D Alice A (1,1) (-2,-1) (0,0) B (-1,-2) Does Bob have a dominant strategy in this game? Yes Ⓒ No It depends on what Alice does. Not enough information to give a definitive answer. QUESTION 24 What is Alice's secure strategy? A B mixing between between A and B Omixing between C and D QUESTION 25 Which of the following is a Nash equilibrium of this game (there may be more than one correct answer for this question. Choose all that is correct) (A, C) □ (A.D) (B, C) (B, D) QUESTION 26 Which of the following is the socially optimal outcome of this game (there may be more than one correct answer for this question. Choose all that is correct) □ (A, C) □ (A.D) (B, C) (B, D) QUESTION 27 If Alice is allowed to move first, following which Bob moves. Which of the following would be a subgame perfect equilibrium of the new game? (there may be more than one correct answer for this question. Choose all that is correct) Alice plays A, and Bob plays C if Alice plays A and D if Alice plays B Alice plays A, and Bob plays D if Alice plays A and C if Alice plays B Alice plays B, and Bob plays C if Alice plays A and D if Alice plays B Alice plays B, and Bob plays D if Alice plays A and C if Alice plays B
V. Multiple Choices or filling the blanks (Q23-27) Given the payoff matrix, answer the following questions Bob C D Alice A (1,1) (-2,-1) (0,0) B (-1,-2) Does Bob have a dominant strategy in this game? Yes Ⓒ No It depends on what Alice does. Not enough information to give a definitive answer. QUESTION 24 What is Alice's secure strategy? A B mixing between between A and B Omixing between C and D QUESTION 25 Which of the following is a Nash equilibrium of this game (there may be more than one correct answer for this question. Choose all that is correct) (A, C) □ (A.D) (B, C) (B, D) QUESTION 26 Which of the following is the socially optimal outcome of this game (there may be more than one correct answer for this question. Choose all that is correct) □ (A, C) □ (A.D) (B, C) (B, D) QUESTION 27 If Alice is allowed to move first, following which Bob moves. Which of the following would be a subgame perfect equilibrium of the new game? (there may be more than one correct answer for this question. Choose all that is correct) Alice plays A, and Bob plays C if Alice plays A and D if Alice plays B Alice plays A, and Bob plays D if Alice plays A and C if Alice plays B Alice plays B, and Bob plays C if Alice plays A and D if Alice plays B Alice plays B, and Bob plays D if Alice plays A and C if Alice plays B
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Solve all parts with proper explanation
Transcribed Image Text:V. Multiple Choices or filling the blanks (Q23-27)
Given the payoff matrix,
answer the following
questions
Bob
C
D
Alice
A (1,1)
(-2,-1)
(0,0)
B (-1,-2)
Does Bob have a dominant strategy in this game?
Yes
Ⓒ No
It depends on what Alice does.
Not enough information to give a definitive answer.
QUESTION 24
What is Alice's secure strategy?
A
B
mixing between between A and B
Omixing between C and D
QUESTION 25
Which of the following is a Nash equilibrium of this game (there may be more than one correct answer for this question. Choose all that is correct)
(A, C)
□ (A.D)
(B, C)
(B, D)
QUESTION 26
Which of the following is the socially optimal outcome of this game (there may be more than one correct answer for this question. Choose all that is correct)
□ (A, C)
□ (A.D)
(B, C)
(B, D)
QUESTION 27
If Alice is allowed to move first, following which Bob moves. Which of the following would be a subgame perfect equilibrium of the new game? (there may be more than one correct answer for this question. Choose all that is correct)
Alice plays A, and Bob plays C if Alice plays A and D if Alice plays B
Alice plays A, and Bob plays D if Alice plays A and C if Alice plays B
Alice plays B, and Bob plays C if Alice plays A and D if Alice plays B
Alice plays B, and Bob plays D if Alice plays A and C if Alice plays B
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