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- A ________ occurs if all players in a game play their best strategies given what their competitors do. a ) Nash equilibrium b ) prisonerʹs dilemma c ) dominant strategy d ) tit‐for‐tat strategyConsider the strategic form game shown. a. Assume that both players are rational. What happens?b. Assume that both players are rational and that each believes that theother is rational. What happens?c. Find the strategies that survive the ISDS.A game can have more than one Nash equilibria.(a) True. (b) False.
- The value of x is 0<x<90. For what value of x is (D, R) a risk dominant equilibrium. Game Bob L RAnn U 100,100 0, 0 D x, x 90, 90 Select one: a.none of the other answers. b.It is never risk dominant. c.For all x, where 0<x<50 d.For all x, 0<x<90. e.It is always risk dominantParamter y = 0 What is the highest payoff any player can receive in any subgame perfect Nashequilibrium of the repeated game?If you take a maximin strategy A. you are ensuring that the other player gets the worst possible outcome. B. you are irrational according to economic definition. C. then both players are doing the best they can given the payoffs in the game. D. you are getting the best possible outcome given that the other player does the thing that's worst for you.
- Anashequilibriumisastrategyprofilesuchthat: a)Both players are playing a best response strategy b)Both players must be playing a dominant strategyc)Both players achieve their highest possible payoff d)a) and c) e)b) and c)A "Prisoner's Dilemma" is a situation in which both parties: a) have an incentive to cooperate(meaning working with the other criminal by keeping one's mouth shut) even without communication b) have an incentive to not cooperate(meaning working with other criminal by keeping one's mouth shut) even through cooperation would be mutually benefical. c)have no incentives to cooperate or not cooperate because either way they lose.Consider a bankruptcy game with two risk neutral players where V =$800,000, C1= $300,000 and C2=$800,000. a) What is the Nash bargaining solution?
- . In a gambling game, Player A and Player B both have a $1 and a $5 bill. Each player selects one of the bills without the other player knowing the bill selected. Simultaneously they both reveal the bills selected. If the bills do not match, Player A wins Player B's bill. If the bills match, Player B wins Player A's bill. a. Develop the game theory table for this game. The values should be expressed as the gains (or losses) for Player A. b. Is there a pure strategy? Why or why not? c. Determine the optimal strategies and the value of this game. Does the game favor one player over the other? d. Suppose Player B decides to deviate from the optimal strategy and begins playing each bill 50% of the time. What should Player A do to improve Player A’s winnings? Comment on why it is important to follow an optimal game theory strategy.Game Theory Consider the entry game with incomplete information studied in class. An incumbent politician's cost of campaigning can be high or low and the entrant does not know this cost (but the incumbent does). In class, we found two pure-strategy Bayesian Nash Equilibria in this game. Assume that the probability that the cost of campaigning is high is a parameter p, 0 < p < 1. Show that when p is large enough, there is only one pure-strategy Bayesian Nash Equilibrium. What is it? What is the intuition? How large does p have to be? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.A player involved in a one-shot game will: A.) Cooperate with its rivals due to the threat of punishment B.) Follow punitive strategies C.) Take actions aimed at creating a reputation with his rivals D.) Act to maximize its immediate payoff E.) Follow a tit-for-tat strategy
