Write down the payoff matrix, Applied Statistics

Assignment Help:

Two individuals, player 1 and player 2, are  competing in an auction to obtain a valuable object. Each player bids in a sealed envelope, without knowing the bid of the other player. The bids must be in multiples of $100 and the maximum that they can bid is $500. The object is worth $400 to player 1 and $300 to Player 2. The highest bidder wins the object. In case of a tie, Player 1 gets the object. The auction is a First Price Auction, i.e., the winner of the object pays whatever price p she bid. So, if the value of the object for a player is x and the player wins, her payoff is x - p. If she loses, her payoff is zero.

(a) Write down the payoff matrix of this game.

(b)  Is there a dominant strategy equilibrium? Is there a weakly dominant strategy equilibrium?

(c) What are the strategy profiles that survive Iterated Elimination of Strictly Dominated strategies?

(d) What are the strategy profiles that survive Iterated Elimination of Weakly Dominated strategies?

(e) Find the Nash equilibria.

(f) What is the difference between profiles that answer both (d) and (e) and profiles that only answer (e)?


Related Discussions:- Write down the payoff matrix

Stratified random sampling, Stratified Random Sampling: This method of ...

Stratified Random Sampling: This method of sampling is used when the population is comprised of natural subdivision of units, The method consist in classifying the population u

Small sample test for mean, If the sample size is less than 30, then we nee...

If the sample size is less than 30, then we need to make the assumption that X (the volume of liquid in any cup) is normally distributed. This forces    (the mean volume in the sam

Find the mean and standard deviation, Problem : A company supplying ele...

Problem : A company supplying electrical products, places a rush order for electric wires. Consignments of wires are to be sent immediately when they are available. Previous

Purposive or judgement sampling, Purposive or Judgement Sampling Under ...

Purposive or Judgement Sampling Under this method of sampling, the choice  of selection of sample  items from the universe  depends exclusively on the judgement  of the investi

SPSS Program, I have 5 observations that i must plug into spss. I need an e...

I have 5 observations that i must plug into spss. I need an example of 1. I do not know if you are familiar with SPSS but I am going to ask anyway. Subject 1 is a Hispanic male who

Decision making ., it is said that management is equivalent to decision mak...

it is said that management is equivalent to decision making? do you agree? explain

Admixture in human populations, Admixture in human populations The inte...

Admixture in human populations The inter-breeding amongst the two or more populations which were previously isolated from each other for the geographical or the cultural reason

Dispersion.., discuss the advantages and disadvantages of measures of dispe...

discuss the advantages and disadvantages of measures of dispersions

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd