MIXED STRATEGY NASH EQUILIBRIUM Consider the following game in strategic form. bị b2 a1 18,2 80,60 a2 40,60 2,18 1-n 1-0 This game has a mixed strategy Nash equilibrium (7* , o*) in which each player uses both pure strategies with strictly positive probability Find the value of o*–n* . (Please report your answer in decimal form, rounded if necessary to the nearest 0.01.)
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- Q56 A Nash equilibrium is an outcome... a. Achieved by cooperation between players in the game. b. That is achieved by collusion where no party has an incentive to change their behaviour. c. Where each player's strategy depends on the behaviour of its opponents. d. That is achieved when players in the game have jointly maximized profits and divided those profits according to market share of each player. e. Where each player's best strategy is to maintain its present behaviour given the present behaviour of the other players.The mixed stratergy nash equalibrium consists of : the probability of firm A selecting October is 0.692 and probability of firm A selecting December is 0.309. The probability of firm B selecting October is 0.5 and probability of firm selecting December is 0.5. In the equilibrium you calculated above, what is the probability that both consoles are released in October? In December? What are the expected payoffs of firm A and of firm B in equilibrium?Consider the “trust game” discussed in class. The first player starts with a $100 endowment and chooses how much to give to the second player. The gift triples in value (i.e. if $20 is given, the second player receives $60). The second player then chooses how much to give back. The first player receives exactly how much is returned (i.e. if $40 is returned, the first player receives $40). The Nash equilibrium of the game is: Group of answer choices: -First player gives $100, second player returns nothing. -First player gives $50, second player returns $50. -First player gives $100, second player returns $300. -There is no Nash equilibrium of this game. -First player gives nothing, second player returns nothing.
- 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.the question is attached as a photo and answer typed below. please help me show the calculations to support the answer the answer Administrator theorem equilibrium is an associate degree equilibrium conception relevant for dynamic games with incomplete info it’s a refinement of Nash equilibrium. The ways and beliefs are; the action rely on the history this is often almost like a sequent game and the belief could also be likelihood distribution over the nodes within the info set. Formally a belief system is associate degree assignment of likelihood of each node within the game such the total of possibilities in any info set. The ways and beliefs ought to satisfy the subsequent condition they're as follows; sequent rationality, every strategy ought to be optimum in expectation given the beliefs. Consistency, every belief ought to be updated per the ways and Bayes decree each path of zero likelihood of the equilibrium the beliefs will be arbitrary as this is the perfect Bayesian…Find all NE of the stage game.(b) Consider a two-period game without discounting in which the stage game is played ineach period. Find all pure strategy SPNE.(c) What’s the min-max payoff of each player?(c1) Consider pure strategies only.(c2) Consider all strategies, including the mixed ones.(d) Now suppose the stage game is repeated infinitely many times. Use the Fudenberg-Maskin Folk theorem to find all possible values of payoff that can be supported as aSPNE.
- E3 Bayesian Game]. Consider a Bayesian game described by a following payoff matrix. Please solve (show your solution). 1. Enumerate all pure strategies for each player. 2. Suppose that player 1 observes his type ?1 = 3. How does player 1 think of the probability of ?2? 3. Find a (pure strategy) Bayesian Nash equilibrium.Two firms bid for a contract to build a university building. Their construction costs are independent and uniformly drawn from [0,1]: Both bidders submit their bids si- multaneously. The winner is the bidder who submits a lowest bid. Tie-breaking rule is random. This kind of bidding game is called i'reverse auction' because the bidders bid for the right to provide a service and the winner is paid for the service. The FCC in 2017 has adopted similar auctions designed to repurpose spectrum for new uses. (a) In the first auction, the winner gets paid the loser's bid. For example, if the winner's cost is 0.5, his bid is 0.56, and the loserís bid is 0.6, then the winner gets the contract and the university pays the winner 0.6. The winner's net profit from the contract is 0.6-0.5 = 0.1. Solve for a Bayesian Nash equilibrium of this auction. What is the equilibrium bid of a firm bid if his cost is actually 0.5? (b) In the second auction, the winner gets paid the his/her own winning…Consider the game of Chicken in which each player has the option to “get out of the way” and “hang tough” with payoffs: Get out of the way Hang tough Get out of the way 2,2 1,3 Hang tough 3,1 00 a. Find all pure strategy Nash equilibria, if they exist b. Let k be the probability that player 1 chooses “hang tough” and u be the probability that player two chooses “hang tough.” Find the mixed stragety Nash equilibria, if they exist
- Two players bargain over 1 unit of a divisible object. Bargaining starts with an offer of player 1, which player 2 either accepts or rejects. If player 2 rejects, then player 1 makes another offer; if player 2 rejects once more, then player 2 makes an offer. If player 1 rejects the offer of player 2, then once more it is the turn of player 1 where he makes two consecutive offers. As long as an agreement has not been reached this procedure continues. For example, suppose that agreement is reached at period 5, it follows that player 1 makes offers in period 1,2 then player 2 makes an o er in period 3, then player 1 makes offers in 4,5. Negotiations can continue indefinitely, agreement in period 't' with a division (x, 1- x) leads to payoffs ( , (1-x)).(The difference from Rubinstein's alternating offer bargaining is that player one makes two consecutive offers, whereas player 2 makes a single offer in her turn.) a. Show that there is a subgame perfect equilibrium in which player 2's…14. Company A and Company B are each telecommunications manufacturers. Both companies manufacture the same products, and they make their decisions based on the other's actions. Both companies are considering opening retail outlets to increase their profits. The payoff matrix shows the profits of the companies in millions of dollars if they choose to open retail outlets. The government imposes a new $5 million tax to open retail outlets. What is the expected outcome of the new payoff matrix, given the tax? The Nash equilibrium is for Company A to not open retail outlets and for Company B to open retail outlets. The Nash equilibrium is for Company A to open retail outlets and for Company B to not open retail outlets. The Nash equilibrium is for both Company A and Company B to open retail outlets. The Nash equilibrium is for both Company A and Company B to not open retail outlets. There is no Nash equilibrium after the change given in the scenario.…Consider a Common Value auction with two bidders who both receive a signal X that is uniformly distributed between 0 and 1. The (common) value V of the good the players are bidding for is the average of the two signals, i.e. V = (X1+X2)/2. Compute the symmetric Nash equilibrium bidding strategy for the second-price sealed-bid auction assuming that players are risk-neutral and have standard selfish preferences. Furthermore, you may assume that the other bidder is following a linear bidding strategy. Make sure to explain your notation and the steps you take to derive the result.