Problem 82. 2 U L 3,5 7,1 R 20 5,3 4,4 Consider the following game in strategic form The expected payoffs in Nash equilibrium are a) (4.6, 3.4) b) (3.4, 4.6) c) (4.5,3.5) d) (5, 3) e) None of the above.
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- 5,3 4,4 3,6 7,6 Find the pure strategy nash equilibriaTwo rival communications companies (Alpha and Beta) are both considering bringing out a revolutionary 8G wireless technology. Unfortunately, the costs of development are so high that the potential market could only support one firm. Both companies understand these possible outcomes. If one firm enters the 8G market and the other does not, the entering firm will receive $500 billion in profits over the next 5 years; the other firm will receive $100 billion over the same 5 years (by concentrating on their current 5G service). If neither enters the 8G field, they can both expect to receive $75 billion over the 5-year period, as they fight over the 5G market. Lastly, if both enter the 8G market, each will end up suffering a $50 billion loss over the same 5 years. Use a game table with “ENTER” and “STAY OUT” to decide each player’s options and the payoffs. Explain why each company has a strong reason to want to announce its intentions before the other company announces theirs.Two friends, Khalid and Mahmood, are going to a watch a world cup football match. They play a simple game in which they hold out one or two fingers to decide who will pay for the other's ticket. Khalid wins if the fingers held out add up to an even number; Mahmood wins if the fingers held out add up to an odd number. The price of the ticket is 25 OMR. Construct a payoff matrix for the game. Is there a unique Nash equilibrium in this game? Which strategy should a player use to maximize her chances of winning the game?
- Suppose that Alex and Bob complete the project sequentially. Assume that Alex decides his effort level and starts the project first, and then Bob decides his effort level and finishes the project. Present the extensive-form representation of the game (i.e., draw a decision tree which is also referred as the game tree). What is your prediction regarding the outcome of the game? Explain your prediction.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…Normal-Form GameFind all Nash equilibria of the following two-player game. Provide necessary computation.
- 4.25 The Gorman Manufacturing Company must decide whether to manufacture a component part at its Milan, Michigan, plant or purchase the component part from a supplier. The resulting profit is dependent upon the demand for the product. The following payoff table shows the projected profit (in thousands of dollars): State of Nature Low Demand Medium Demand High Demand Decision Alternative s1 s2 s3 Manufacture, d1 -20 40 100 Purchase, d2 10 45 70 The state-of-nature probabilities are P(s1) = 0.35, P(s2) = 0.35, and P(s3) = 0.30. Use a decision tree to recommend a decision.Recommended decision: Use EVPI to determine whether Gorman should attempt to obtain a better estimate of demand.EVPI: $Brown’s TV Production is considering producing a pilot for a comedy series for a major network. While the network may reject the pilot and series, it may also purchase the program for 1 or 2 years. Brown may produce the pilot or transfer the rights for the series to a competitor for $100,000. Brown’s profits are summarized in the following payoff table (profits in thousands). sate of nature reject 1 year 2 years produce pilot -100 50 150 sell to competitor 100 100 100 If the probability estimates for the states of nature are, P(reject)=0.20, P(1 year)=0.30, and P(2 years)=0.5, what is the maximum Brown should be willing to pay for inside information on what the network will do?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…
- 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 "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 loser's 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 bid. For…No written by hand solution Cooperation between players in a finitely repeated game is difficult to maintain. Why is this the case? Group of answer choices Each player has an incentive to deviate from the cooperative strategy during the last period of the game. A Nash equilibrium is not possible in finite repeated games. Finite games only work if there are more than 20 periods. Both players are likely to be discovered by the authorities before the end of the game.Determine all of the Nash equilibria (pure-strategy and mixed-strategy equilibria) of the following game:
