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Find Pure Nash Equilibria
1. Consider a two-player game in which player 1 chooses the strategy x1 from the closed interval [-1, 1] while player 2 chooses the strategy x2 from the same closed interval [-1, 1]. Player 1's utility function is x21/2 + x1x2 and player 2's utility function is x2 2/2 - x1x2. Find and plot the best- response function of each player (against any pure strategy of the opponent). Is there a pure strategy Nash equilibrium of the game?
2. Consider a game in which player 1 chooses rows, player 2 chooses columns and player 3 chooses matrices. Only Player 3's payoffs are given below. Show that D is not a best response for player 3 against any combination of (mixed) strategies of players 1 and 2. However, prove that D is not dominated by any (mixed) strategies of player 3.
3. Consider the following three-player game and find all pure Nash Equilibria. Can you find any Nash equilibrium in which exactly two of the three players play a pure strategy while the other plays a mixed strategy (such as (B, R, ½X ½Y)). Explain by considering all possible cases.
4. Show that the following game has two types of NE: (i) player 1 chooses D, 2 chooses C with probability at least 1/3 and player 3 chooses L, and (ii) where player 1 chooses C, player 2 chooses C and 3 chooses R with probability at least ¾.
Scenario The French thinker, Jean Jacques Rousseau, presented the subsequent state of affairs. 2 hunters will either jointly hunt a stag (an adult deer and rather massive meal)
This chapter introduces mixed strategies and the methods used to solve for mixed strategy equilibria. Students are likely to accept the idea of randomization more readily if they t
1. Two firms, producing an identical good, engage in price competition. The cost functions are c 1 (y 1 ) = 1:17y 1 and c 2 (y 2 ) = 1:19y 2 , correspondingly. The demand functi
Explain oligopoly's structure and use game theory to explain why oligopoly firms tend not to use price to compete. Answer- Oligopoly is an imperfect market where there are
While ancient auctions involve one seller and plenty of consumers, a reverse auction typically involves several sellers and one buyer. for instance, procurement auctions are used t
GAME PLAYING IN CLASS GAME 1 Adding Numbers—Win at 100 This game is described in Exercise 3.7a. In this version, two players take turns choosing a number between 1 and 10 (inclus
Named when Vilfredo Pareto, Pareto optimality may be alive of potency. An outcome of a game is Pareto optimal if there's no different outcome that produces each player a minimum of
if the first three words are "the boy''s down" what are the last three words?
Suppose that the incumbent monopolist, in the previous question, can decide (before anything else happens) to make an irreversible investment in extra Capacity (C), or Not (N). If
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