Question

A hundred players are participating in this game (N = 100). Each player has to choose an integer between 1 and 100 in order to guess “5/6 of the average of the responses given by all players”. Each player who guesses the integer closest to the 5/6 of the average of all the responses, wins.

(a) Q4 Find all weakly dominated strategies (if any).

(b) Find all strategies that survive the Iterative Elimination of Dominated Strategies (IEDS) (if any).

IEDS:

1. Eliminate all strictly (weakly) dominated strategies for all players in the original game.

2. 2 Eliminate all strictly (weakly) dominated strategies for all players in the modified game where players cannot choose any strategy that was eliminated at Step 1.

3. 3 Eliminate all strictly (weakly) dominated strategies for all players in the modified game where players cannot choose any strategy that was eliminated at Steps 1 and 2.

4. 4 ...
   and so on until there are no new strictly (weakly) dominated

   strategies for any of the players.

Answer 1

a. A strategy is weakly dominant if ,regardless of what any other players do, the strategy earns a payer a playoff at least as high as any other strategy and the strategy earns a strictly higher payoff or some profile of other player' strategies

b. The iterative elimination of strongly dominated strategies [IESDS] are mixed equilibrium solution concepts are studied in an interated two-person investment game with discrete strategy spaces ,non-recoverable investments , and either equal or unequal investment.