Find a very weakly dominant strategy that is not strictly dominant. 3) c; 5) x; 7) z 4) d; 2) b; 6) y: 1) a; 1\2 x y 2 a 1,2 2,2 5,1 b 4,1 3,5 3,3 c 5,2 4,4 7,0
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- For the game in FIGURE 7.6, derive players’ best-reply functions, plot them as shown in Figure 7.5, and find the Nash equilibrium.If you advertise and your rival advertises, you each will earn $4 million in profits. If neither of you advertises, you will each earn $10 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn $1 million and the non-advertising firm will earn $5 million. If you and your rival plan to be in business for only one year, the Nash equilibrium is Group of answer choices for each firm to advertise. for neither firm to advertise. for your firm to advertise and the other not to advertise. none of the provided answers. 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.There are two firms in an industry, Firm A and Firm B. If firm A and firm B both advertise, they each will earn $5 million in profits. If neither firm advertises, they will each earn $10 million in profits. However, if one firm advertises and the other does not, the firm that advertises will earn $15 million and the non-advertising firm will earn $1 million. List all Nash equilibrium to this game. Both firms advertise Firm A advertises and Firm B does not Firm B advertises and Firm B does not Neither firm advertises No Nash equilbrium exists
- Firm A Firm B Low Price High Price Low Price (2, 2) (10, −8) High Price (−8, 10) (15, 15) Suppose the game is infinitely repeated, and the interest rate is 10 percent. The firms are allowed to collude and make joint decisions. Both firms agree to charge a high price, provided no player has charged a low price in the past. This collusive outcome will be implemented with a trigger strategy that states that if any firm cheats (by charging a low price), then the agreement is no longer valid and each firm may make their own independent decisions. Will the trigger strategy be effective in implementing the collusive agreement? Please explain and show all necessary calculations.Two players bargain over $20. Player 1 first proposes a split of(n, 20 - n), where n is an integer in {0, 1, ..., 20}. Player 2 can either accept or reject this proposal. If player accepts it, player 1 obtains $n and player 2 obtains $(20 - n). If player 2 rejects it, the money is taken away from them and both players will get $0. Question: Find two subgame perfect Nash equilibria of this game and state clearly each player's equilibrium strategies (recall that in a dynamic game, a player's strategy is a complete-contingent plan). Explain why the strategy profiles form a subgame perfect equilibrium.Explain all will rate what is always true for a pure nash equilibrium of a two-person non zero-sum game A.No player can improve his payoff with a unilateral change of strategy B. it is a Pareto maximum of the payoff matrix C. No player can worsen the payoff of his opponent with a unilateral change of strategy D. It gives worse payoffs to both players than any berge equilibrium
- Use the strictly dominant strategy to find a Pure Strategy Nash Equilibrium if there is one.Find the mixed-strategy Nash equilibrium of the following normal-form game(Gibbons exercise 1.12) L R T 2,1 0,2 B 1,2 3,0A total of n ≥ 2 companies are considering entry into a new market. The cost of entry is 30. If only one company enters, then its gross profit is 200. If more than one company enters, then each entrant earns a gross profit of 40. The payoff to a company that enters is its gross profit minus its entry cost, while the payoff to a company that does not enter is 60. Find a symmetric Nash equilibrium in mixed strategies.
- q52 If you advertise and your rival advertises, you each will earn 14 million in profits. If neither of you advertises, you will each earn 20 million in profits. However, if one of you advertises and the other does not, the firm that advertises will earn 10 million and the non-advertising firm will earn 16 million. If you and your rival plan to be in business for only one year, the Nash equilibrium is a. for each firm to advertise. b. for the other firm to advertise and your firm not to advertise. c. for your firm to advertise and the other not to advertise. d. for neither firm to advertise.Suppose that there are only two firms in a market in which demand is given by p = 64 - Q, where Q is the total production of the two firms. Each firm can choose either a low level of output, qL = 15, or a high level of output, qH = 20. The unit cost of production for both firms is $4. Write down the normal-form representation of the game in which the strategic variable for each firm is the quantity of output and the firms make their choices simultaneously. Find the pure strategy Nash equilibrium of this game (quantities produced and market price).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
