Consider the following normal-form game: L C U ?,? 0,8 M 8,0 2,2 D 2,4 4,4 R 4,4 10, 10 6,6 ill in the first cell in the above matrix such that: a) The Nash equilibrium couple of strategies is (M, R). Explain. b) The Nash equilibrium couple of strategies is (U, L). Explain.
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- on 8.1 Consider the following game: Player 1 A C D 7,6 5,8 0,0 Player 2 E 5,8 7,6 1, 1 F 0,0 1,1 4,4 a. Find the pure-strategy Nash equilibria (if any). b. Find the mixed-strategy Nash equilibrium in which each player randomizes over just the first two actions. c. Compute players' expected payoffs in the equilibria found in parts (a) and (b). d. Draw the extensive form for this game.Answer all questions, show all working. Consider the following game in strategic or normal form. A2 B2 C2 A1 1,0 1,2 -2,1 B1 6,2 0,3 2,3 C1 2,2 -2,1 2,3 Use the iterative elimination of strictly dominated strategies to reduce the game as much as possible. What is the set of rationalizable strategies for each player? What is/are Nash equilibrium(s) in this game? Explain the differences between cooperative and non- cooperative games. What are the fundamental hypotheses about the behavior of the persons in Game theory?Consider the game with the payoffs below. Which of the possible outcomes are MORE efficient than the Nash Equilibrium (NE)? Note, they do NOT need to be Nash equilibria themselves, they just need to be more efficient than the NE. Multiple answers are possible, but not necessary. You need to check ALL correct answers for full credit. JILL High Medium LowMAGGIE Left 3,4 2,3 2,2Center 4,8 9,7 8,7Right 7,6 8,5 9,4Group of answer choices (Left, Low) There is no strategy combination that is more efficient than the Nash equilibrium for this game. (Right, Medium) (Left, High) (Center, Medium) (Center, High) (Center, Low) (Left, Medium) (Right, Low) (Right, High)
- Consider the following strategic game with 2 players: P1 AND P2 E F G H A 10,30 0,50 5,5 40,20 B 40,10 10,10 8,20 30,5 C 15,5 10,30 5,20 25,20 D 20,3 20,8 6,6 20,0 (a) Specify the strategies for P1 and P2, respectively. Eliminate all strictlydominated strategies, and FIND the reduced game until you can reduce the game nofurther.(b) Find all the Nash equilibria for the reduced game, including the mixed-strategy ones. Find the Nash equilibrium of the following modified Rock-Paper-Scissors game: • When rock (R) beats scissors (S), the winner’s payoff is 10 and the loser’s payoff is −10. • When paper (P) beats rock, the winner’s payoff is 5 and the loser’s payoff is −5. • When scissors beats paper, the winner’s payoff is 2 and the loser’s payoff is −2. • In case of ties, both players receive 0 payoff. You are suposed to create a system of equations and then solve for them and find 3 probabilities- please show how to do thatConsider the payoff matrix for a game depicted below. Player 1 selects the row and Player 2 selects the column. Up Down Left 1, -1 -1, 1 Right -1, 1 1, -1 What is (are) the Nash equilibrium (equilibria)? Question 18Answer a. Player 1 plays right; Player 2 plays down b. Player 1 plays left; Player 2 plays down c. Player 1 plays down; Player 2 plays left d. Player 1 plays right; Player 2 plays up e. Player 1 plays up; Player 2 plays left f. There is no Nash equilibrium g. Player 1 plays down; Player 2 plays right h. Player 1 plays up; Player 2 plays right i. Player 1 plays left; Player 2 plays up
- 4. Correlated EquilibriaConstruct an example (not one from class or the reading) of a Normal form game with a correlated equilibrium that is not a Nash equilibrium.Player 1 X Y Player 2 1 2 1 3,2 2 Wo 1 1,3 -0,1 hich of the following is the Subgame Perfect Nash Equilbrium in thisSuppose O2 and Vodafone are the only two telecommunicationscompanies in UK. Both companies are considering whether ornot to stop offering unlimited data plans. Each company has twostrategies: stop or don’t stop. The first entry in the brackets is the payoffsof O2 and the second entry is the payoffs of Vodafone, both in $million.What will be the dominant strategies of O2 and Vodafone and what willbe the Nash equilibrium? Explain your answers.
- Consider the following game in strategic or normal form. A2 B2 C2 A1 1,0 1,2 -2,1 B1 6,2 0,3 2,3 C1 2,2 -2,1 2,3 Use the iterative elimination of strictly dominated strategies to reduce the game as much as possible. What is the set of rationalizable strategies for each player? What is/are Nash equilibrium(s) in this game?Solve for the Nash equilibrium (or equilibria) in each of the following games. (a) The following two-by-two game is a little harder to solve since firm 2’spreferred strategy depends of what firm 1 does. But firm 1 has a dominantstrategy so this game has one Nash equilibrium. Firm 2 Launch Don’tFirm 1 Launch 60, -10 100, 0 Don’t 80, 30 120, 0 What is the Nash equilibrium of this simultaneous-move game? (b) What would the outcome of this game be if instead firm 1 moved first and then, after seeing what firm 1 chose, firm 2 chose it strategy? In this case firm 1 doesn’t necessarily need to choose a best response, but firm 2 must choose a best response since it moves second.Suppose Proctor & Gamble (PG) and Johnson & Johnson (JNJ) are simultaneously considering new advertising campaigns. Each firm may choose a high, medium or low level of advertising. a. What are each firm’s best responses to its rival’s strategies? b. Does either firm have a dominant strategy? c. What is the Nash equilibrium in this game?