Determine what will be the outcome of the game

Assignment Help Econometrics

Reference no: EM13205684

Suppose that two players are playing the following game. Player A can choose either Top or Bottom, and Player B can choose either Left or Right. The payoffs are given in the following table:
Player B
player A top 5 5 4 6
bottom3 4 6 2

where the number on the left is the payoff to Player A, and the number on the right is the payoff to Player B.

A) Does player A have a dominant strategy, and if so what is it?

B) Does player B have a dominant strategy and if so what is it?

C) For each of the following say True if the strategy combination is a Nash equilibrium, and False if it is not a Nash equilibrium:

i) Player A plays Top and Player B plays Left

ii) Player A plays Bottom and Player B plays Left

iii) Player A plays Top and Player B plays Right

iv) Player A plays Bottom and Player B plays Right

D) If each player plays her maximin strategy what will be the outcome of the game? (Give your answer in terms of the strategies each player chooses-for example, "Player A plays Bottom and Player B plays Right"

E) Now suppose the same game is played with the exception that Player A moves first and Player B moves second. Using the backward induction method discussed in the online class notes, what will be the outcome of the game?

Reference no: EM13205684

Questions Cloud

What is the price of a call option with the same exercise : Stock A is currently selling for $37 per share. A put option with an exercise price of $45 sells for $8 and expires in four months. If the risk-free rate of interest is 2:3% per year, compounded daily, what is the price of a call option with the s..

State the values of the specific rotation : The values of the specific rotation, [alpha]20D, for the alpha and beta anomers of D-galactose are 150.7 and 52.8 degrees, respectively. A mixture that is 20% of alpha-D-galactose and 80% beta-D-galactose is dissolved in water at 20 degrees C.

Why arent wages falling so to clear market in equilibrium : Efficiency wage models are sometimes used to explain the existence of involuntary unemployment in the labour market. Provide a short description of the shirking model. Why can it be in a firm's interest to increase the wage above what is paid by o..

Thermal decomposition of limestone to lime required heat : Thermal decomposition of 5.00 metric tons of limestone to lime and carbon dioxide requires 9.00 x 10^6 kJ of heat.

Determine what will be the outcome of the game : Now suppose the same game is played with the exception that Player A moves first and Player B moves second. Using the backward induction method discussed in the online class notes, what will be the outcome of the game

Explain compounds of boron and hydrogen are remarkable : Compounds of boron and hydrogen are remarkable for their unusual bonding and also for their reactivity. With the more reactive halogen

How is the surplus divided between groups in the economy : Explain what short-run impact immigration is likely to have on natives' wages and employment when immigrants are a) substitutes to natives and b) complements to natives. Explain also the so-called immigration surplus for the short-run case.

State what are its colors in acidic and in basic solutions : Phenolphthalein is one of the most common indicators. What are its colors in acidic and in basic solutions?

Explain reaction is a catalytic hydrogenation : This reaction is a catalytic hydrogenation that only partially reduces an alkyne. Consider whether the hydrogenation

User Account

All Pages