Find all pure and mixed strategy equilibria of the game

Assignment Help Microeconomics

Reference no: EM13451738

There are two countries that are battling in two locations: location A and location B. Suppose that each country has 2 divisions in its army. Divisions cannot be subdivided, so a country must choose either to put both divisions at Location A, both at Location B, or to put one division at location A and one at location B. If a country has more divisions at one location, then they win that location. If the countries have the same number of divisions at a location, then each country wins that location with a probability of 1/2. A country wins if it wins both locations and then it gets a payo of 1 and the other country gets a payo of -1. If the countries split which locations they win, then the war is a stalemate and they each get a payo of 0.

(a) Find all the pure and mixed strategy equilibria of this game (hint: writing out the payo matrix for the normal form will make this fairly easy).

(b) Now suppose that both countries have three divisions (so they can put three divisions at one location or two at one location and one at the other location). Find all the pure and mixed equilibria of the game.

(c) Consider a variation of the game where one country has three divisions and the other has only two divisions. Draw the normal form payo matrix for the game and enter the expected payos. (d) Find all of the pure strategy equilibria for the game in (c).

Reference no: EM13451738

Questions Cloud

Write down the impacts of outsourcing and off-shoring on : international trade has pros and cons.nbspeconomists generally support free trade.nbspinternational trade has played a

Use the internet to research two publically held health : use the internet to research two publically held health care organizations in your state that you believe would benefit

Define and explain what segmentation is and discuss : 1.define and explain what segmentation is and discuss different segmentation bases you could use for your

Youve studied a variety of debt instruments bonds are : youve studied a variety of debt instruments. bonds are unique in several significant ways and their differences impact

Find all pure and mixed strategy equilibria of the game : there are two countries that are battling in two locations location a and location b. suppose that each country has 2

What are some of the considerations to keep in mind : part i what are some of the considerations to keep in mind concering the values that the different cultures have on

The city of kiel issued 3000000 of 8 coupon 30-year : the city of kiel issued 3000000 of 8 coupon 30-year semiannual payment tax-exempt municipal bonds 10 years ago. the

Which of the following is the result of the inseparable : which of the following is the result of an inseparable relationship between business and society?a. all business

There are many ways to state stock returns nbspdiscuss the : describe how risk is measured in a given portfolio. when is a portfolio efficient? nbspwhen is the portfolio

User Account

All Pages