8 4. Consider the following game:ACA.(3,3)(4,5)(2,1)(9,4)(8,8)(7,7)(6,6)(5,9)(1,2)B(a) Find the guarantee for each row and each column. Find the prudent strategies for Row and forColumn.(b) Indicate any saddle points (or pure strategy Nash Equilibria)?(c) Find any dominated strategies. Reduce the game by deleting the dominated strategies. Repeat thisprocess as many times as possible. What does the result suggest about how the players should play thisgame? Is this outcome Pareto optimal?

*Answer: Prudent Strategies are those for which worst possible outcome is the best among all .…

Answered: (2,1) (7,7) (1,2 Jarantee for each row…

(2,1) (7,7) (1,2 Jarantee for each row and each column. Find the prudent strategies for cate any saddle points (or pure strategy Nash Equilibria)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.9P

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Question

4. Consider the following game:
A
C
A.
(3,3)
(4,5)
(2,1)
(9,4)
(8,8)
(7,7)
(6,6)
(5,9)
(1,2)
B
(a) Find the guarantee for each row and each column. Find the prudent strategies for Row and for
Column.
(b) Indicate any saddle points (or pure strategy Nash Equilibria)?
(c) Find any dominated strategies. Reduce the game by deleting the dominated strategies. Repeat this
process as many times as possible. What does the result suggest about how the players should play this
game? Is this outcome Pareto optimal?

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