Two hunters may choose, individually and simultaneously, to go deer hunting, as the deer can provide abundant and appetizing food, or to go hare hunting, also appetizing, but scarce. Deer hunting represents a challenge and requires mutual coordination. Hunting a deer without cooperation means that the deer will be safe; while hunting a deer in groups guarantees it will be caught. Hare hunting is an individual activity that does not require another hunter, and the one who decides to go hare hunting always makes it. The reward for hunting a hare is 1, while the reward for each of the hunters for catching a deer together is 3 for each one. The reward for not hunting a deer is 0. Specify the game in a normal way arising from this situation.Do the players have strictly dominated strategies? Determine the set of rationalizable strategies in this case.Find all Nash equilibriums in this case, if any. Are they efficient in Pareto sense? Justify your answer.

The game above is a stag game wherein both players can coordinate for a higher hunt or can work…

Answered: Two hunters may choose, individually…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Two hunters may choose, individually and simultaneously, to go deer hunting, as the deer can provide abundant and appetizing food, or to go hare hunting, also appetizing, but scarce. Deer hunting represents a challenge and requires mutual coordination. Hunting a deer without cooperation means that the deer will be safe; while hunting a deer in groups guarantees it will be caught. Hare hunting is an individual activity that does not require another hunter, and the one who decides to go hare hunting always makes it. The reward for hunting a hare is 1, while the reward for each of the hunters for catching a deer together is 3 for each one. The reward for not hunting a deer is 0.

Specify the game in a normal way arising from this situation.
Do the players have strictly dominated strategies? Determine the set of rationalizable strategies in this case.
Find all Nash equilibriums in this case, if any. Are they efficient in Pareto sense? Justify your answer.

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