MICROECONOMICS
MICROECONOMICS
11th Edition
ISBN: 9781266686764
Author: Colander
Publisher: MCG
Question
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Chapter 20, Problem 3IP

(a)

To determine

The Nash equilibrium of the payoff matrix.

(b)

To determine

The difference in the play of matrix if it is symmetric.

(c)

To determine

The reason why the players cooperate 60 times out of 100 games.

(d)

To determine

The choice of players when playing the 100th game.

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Students have asked these similar questions
Suppose that you and a friend play a matching pennies game in which each of you uncovers a penny. If both pennies show heads or both show tails, you keep both. If one shows heads and the other shows tails, your friend keeps them. Show the pay- off matrix. What, if any, is the pure-strategy Nash equilibrium to this game? Is there a mixed-strategy Nash equilibrium? If so, what is it?
Use the following payoff matrix for a one-shot game to answer the accompanying questions. a. Determine the Nash equilibrium outcomes that arise if the players make decisions independently, simultaneously, and without any communication. Which of these outcomes would you consider most likely? Explain. 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, and what outcome do you think would occur as a result? 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 known by both players. What outcome would you expect? Explain.
Use the following payoff matrix to answer the questions below. Cooperate Defect 1 Cooperate 100, 100 40, 125 Defect 125, 40 50, 50 Which player (if any) has a Dominant Strategy? [ Select ] What is the Nash Equilibrium of this game? [ Select ] Does this game satisfy the definition of a prisoner's dilemma? [ Select ]
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