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Now consider a modified version of Problem where the defense is also allowed to roll multiple dice. Each player's highest roll is compared with the other player's highest roll, their second highest roll is compared with the other player's second highest roll, etc. As before, any ties go to the defense.
(a) Suppose both players roll two dice. In this case, there are two armies to be lost since there are two dice comparisons (highest vs. highest and lowest vs. lowest). Find each of the following probabilities:
(i) Offense wins both comparisons (and thus defense loses two armies).
(ii) Offense wins one comparison and defense wins the other (and thus each lose one army).
(iii) Defense wins both comparisons (and thus offense loses two armies).
(b) Repeat all the calculations in part (a) for the scenario where the offense rolls three dice and the defense rolls two dice. As before, there are two comparisons to be made in this scenario (highest vs. highest and second highest vs. second highest).
Player 1 has the following set of strategies {A1;A2;A3;A4}; player 2’s set of strategies are {B1;B2;B3;B4}. Use the best-response approach to find all Nash equilibria.
A supplier and a buyer, who are both risk neutral, play the following game, The buyer’s payoff is q^'-s^', and the supplier’s payoff is s^'-C(q^'), where C() is a strictly convex cost function with C(0)=C’(0)=0. These payoffs are commonly known.
Pertaining to the matrix need simple and short answers, Find (a) the strategies of the firm (b) where will the firm end up in the matrix equilibrium (c) whether the firm face the prisoner’s dilemma.
Consider the two-period repeated game in which this stage game is played twice and the repeated-game payos are simply the sum of the payos in each of the two periods.
Two players, Ben and Diana, can choose strategy X or Y. If both Ben and Diana choose strategy X, every earns a payoff of $1000.
The market for olive oil in new York City is controlled by 2-families, Sopranos and Contraltos. Both families will ruthlessly eliminate any other family that attempts to enter New York City olive oil market.
Following is a payoff matrix for Intel and AMD. In each cell, 1st number refers to AMD's profit, while second is Intel's.
Determine the solution to the given advertising decision game between Coke and Pepsi, assuming the companies act independently.
Little Kona is a small coffee corporation that is planning entering a market dominated through Big Brew. Each corporation's profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price.
Suppose you and your classmate are assigned a project on which you will earn one combined grade. You each wish to receive a good grade, but you also want to avoid hard work.
Consider trade relations in the United State and Mexico. Suppose that leaders of two countries believe the payoffs to alternative trade policies are as follows:
Use the given payoff matrix for a simultaneous move one shot game to answer the accompanying questions.
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