1. For the following payoff matrix, find these:
a) Nash equilibrium or Nash equilibria (if any)...
1. For the following payoff matrix, find these:
a) Nash equilibrium or Nash equilibria (if any)
b) Maximin equilibrium
c) Collusive equilibrium (also known as the "cooperative
equilibrium")
d) Maximax equilibrium
e) Dominant strategy of each firm (if any)
Firm A
Strategy X
Strategy Y
Firm B
Strategy X
200
23
250
20
Strategy Y
30
50
1
500
2. For the following payoff matrix, find these:
a) Nash equilibrium or Nash equilibria...
Pure strategy Nash equilibrium
3. In the following games, use the underline method to find all...
Pure strategy Nash equilibrium
3. In the following games, use the underline method to find all
pure strategy Nash equilibrium.
(B ) [0, 4, 4 0, 5, 3]
[4, 0 0 4, 5, 3]
[3, 5, 3, 5 6, 6]
(C) [2, -1 0,0]
[0,0 1,2]
(D) [4,8 2,0]
[6,2 0,8]
(E) [3,3 2,4]
[4,2 1,1]
4. In the following 3-player game, use the underline method to
find all pure strategy Nash equilibria. Player 1 picks the row,
Player 2...
8. Collusive outcome versus Nash
equilibrium
Consider a remote town in which two restaurants, All-You-Can-Eat
Café...
8. Collusive outcome versus Nash
equilibrium
Consider a remote town in which two restaurants, All-You-Can-Eat
Café and GoodGrub Diner, operate in a duopoly. Both restaurants
disregard health and safety regulations, but they continue to have
customers because they are the only restaurants within 80 miles of
town. Both restaurants know that if they clean up, they will
attract more customers, but this also means that they will have to
pay workers to do the cleaning.
If neither restaurant cleans, each...
Question 1.
Put the following game into the normal form. That is, describe
the set of...
Question 1.
Put the following game into the normal form. That is, describe
the set of players, the strategy sets for each player, the payoff
functions, and draw the game in matrix form. What do you expect
would happen in this game, and why?Two kids are playing a game
of Chicken. In this game, they ride their bikes as fast as theycan
at each other. The one to swerve or turn out of the way loses, he
is a Chicken...
he figure below shows the payoff matrix for two firms, Firm 1
and Firm 2, selecting...
he figure below shows the payoff matrix for two firms, Firm 1
and Firm 2, selecting an advertising budget. For
each cell, the first coordinate represents Firm 1's payoff and the
second coordinate represents Firm 2's payoff. The firms
must choose between a high, medium, or low budget.
Payoff Matrix
Firm 1
High
Medium
Low
Firm 2
High
(0,0)
(5,5)
(15,10)
Medium
(5,5)
(10,10)
(5,15)
Low
(10,15)
(15,5)
(20,20)
Use the figure to answer the following questions. Note:
you only need...
Consider an industry with two firms. Each firm can spend either
0, $1, or $4 on...
Consider an industry with two firms. Each firm can spend either
0, $1, or $4 on a lobbying effort. Call the amount spent by Firm
i, Li. Now, regardless of their
lobbying effort, each firm gets an identical subsidy having present
value . (This subsidy depends on both the total lobbying effort and
on how widespread it is.)
Treating it as a 2-player game, construct a 3 × 3
diagram showing the net payoffs of each firm.
Find all Nash...
Question 1 Recall our discussion about freeriding behavior.
Consider the following game: It is u season,...
Question 1 Recall our discussion about freeriding behavior.
Consider the following game: It is u season, and two roommates must
decide on whether or not to get u shot, which costs K dollars. Let
S (for example, S = 10, etc.) represent the benet of not getting
sick. That is, if a player gets sick, they incur a cost −S of
getting sick, and if they don't, they receive a benet of S. Now, if
neither roommate pays for the...