Question

GAME THEORY:

Consider the voluntary contribution to building a fence game. Assume that v1 = v2 = 100, and C = 150. Select all that apply.

A. It is efficient to build the fence

B. Contributing more than her own valuation is a strictly dominated strategy for each player.

C. There are Nash equilibria in which the fence is not built.

D. Each player contributing 100 is a pure strategy Nash equilibrium in this game.

Please explain your answers! Thank you!

Answer #1

The correct answers are -

A. It is efficient to build the fence

B. Contributing more than her own valuation is a strictly dominated strategy for each player

C. There are Nash equilibria in which the fence is not built.

Reason

a>Since the overall cost of the fence-making is lesser than the total values, so it is efficient to make the fence.

B> One can always have at least value 0 by not paying, so paying more than his own value does not make sense.

C> When one player pays nothing, the best strategy for the other player is also to not pay anything.

Consider the voluntary contribution to building a fence game
discussed in class. Assume that v1 = v2=100 and C=150, and select
all that apply. a. There are Nash equilibria in which the fence is
not built. b. Each player donating 100 is a pure strategy Nash
equilibrium in the game. c. It is efficient to build the fence. d.
Contributing more than her own valuation is a strictly dominated
strategy for each player.

3. Consider the following game. There are 10 political
positions, 1,... ,10, from the most liberal to the most
conservatives. Iwo politicians simultaneously choose what position
they pick in order to maximize the percentage of votes they can
get, 10% of voters are at each position. Voters will vote for the
politician they are closer to. If two politicians choose the same
position then they each get 50% of the votes.
(a) Solve this game by iterative deletion of strictly...

What tools could AA leaders have used to increase their
awareness of internal and external issues?
???ALASKA AIRLINES: NAVIGATING CHANGE
In the autumn of 2007, Alaska Airlines executives adjourned at
the end of a long and stressful day in the
midst of a multi-day strategic planning session. Most headed
outside to relax, unwind and enjoy a bonfire
on the shore of Semiahmoo Spit, outside the meeting venue in
Blaine, a seaport town in northwest
Washington state.
Meanwhile, several members of...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 16 minutes ago

asked 26 minutes ago

asked 34 minutes ago

asked 47 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago

asked 3 hours ago