a. b. Five commuters A, B, C, D, E, must choose between their own car with a fixed travel cost, or the public bus, where the charge to each user decreases with the number of users. Let c, denote the cost/travel time of using his own car for commuter i {A, B, C, D, E) and let CA = 1, CB = 3, cc = 5,CD = 7,CE = 9. Regarding the bus, if 1 person uses it his cost will be 10, if 2 people use it then each of them will have cost 8, if 3 people use it then each of them will have cost 6, if 4 people use it then each of them will have cost 4, while if all 5 people use it then each of them will have cost 2. Naturally, each player wants to minimize his own cost. C. Is there any dominated strategy (ies) in this game? If yes, perform an iterated elimination of all dominated strategies. Explicitly mention the sequence in which the corresponding strategies are eliminated and present the resulting game. Find (and clearly present) all pure Nash equilibria (NE) of the game. What is the Price of Stability of this game (assuming that the objective function is the total travel time)?

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Your Question:
a.
b.
Five commuters A, B, C, D, E, must choose between their own car with a fixed travel cost, or the public
bus, where the charge to each user decreases with the number of users. Let c, denote the cost/travel time
of using his own car for commuter i {A, B, C, D, E) and let CA = 1, CB = 3, cc = 5,CD = 7,CE = 9.
Regarding the bus, if 1 person uses it his cost will be 10, if 2 people use it then each of them will have
cost 8, if 3 people use it then each of them will have cost 6, if 4 people use it then each of them will have
cost 4, while if all 5 people use it then each of them will have cost 2. Naturally, each player wants to
minimize his own cost.
C.
Is there any dominated strategy (ies) in this game? If yes, perform an iterated elimination of all
dominated strategies. Explicitly mention the sequence in which the corresponding strategies are
eliminated and present the resulting game.
Find (and clearly present) all pure Nash equilibria (NE) of the game.
What is the Price of Stability of this game (assuming that the objective function is the total
travel time)?
Transcribed Image Text:a. b. Five commuters A, B, C, D, E, must choose between their own car with a fixed travel cost, or the public bus, where the charge to each user decreases with the number of users. Let c, denote the cost/travel time of using his own car for commuter i {A, B, C, D, E) and let CA = 1, CB = 3, cc = 5,CD = 7,CE = 9. Regarding the bus, if 1 person uses it his cost will be 10, if 2 people use it then each of them will have cost 8, if 3 people use it then each of them will have cost 6, if 4 people use it then each of them will have cost 4, while if all 5 people use it then each of them will have cost 2. Naturally, each player wants to minimize his own cost. C. Is there any dominated strategy (ies) in this game? If yes, perform an iterated elimination of all dominated strategies. Explicitly mention the sequence in which the corresponding strategies are eliminated and present the resulting game. Find (and clearly present) all pure Nash equilibria (NE) of the game. What is the Price of Stability of this game (assuming that the objective function is the total travel time)?
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