4. Consider a normal form game with N= {1,2} and S= {A,B,C,D} × {W,X,Y,Z}. Assume that L1 allows to eliminate D and X, L2 allows to eliminate B and C, and L3 allows to eliminate Z. Provide payoffs that lead to this outcome. State the rationality assumptions explicitly.

4. Consider a normal form game with N= {1,2} and S= {A,B,C,D} × {W,X,Y,Z}. Assume that L1 allows to eliminate D and X, L2 allows to eliminate B and C, and L3 allows to eliminate Z. Provide payoffs that lead to this outcome. State the rationality assumptions explicitly.

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter13: Between Competition And Monopoly

Section: Chapter Questions

Problem 10DQ

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Question

4. Consider a normal form game with N= {1,2} and S= {A,B,C,D} x {W,X,Y,Z}. Assume that L1 allows to
eliminate D and X, L2 allows to eliminate B and C, and L3 allows to eliminate Z. Provide payoffs that lead to
this outcome. State the rationality assumptions explicitly.

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