Answered: ure strategy (b) Find all weak-perfect…

ure strategy (b) Find all weak-perfect Bayesian Nash equilibria in pure strategies. Do not forget the systems of beliefs. Argue well if there is none.

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Oligopoly

Section: Chapter Questions

Problem 9PA

See similar textbooks

Related questions

Q: What is the unique Nash equilibirum in mixed strategies for the above question?

A: Unique Nash equilibirum in mixed strategies is provided in the original solution.

Q: Find all the Nash equilibria (both pure and mixed) of the following game, inter- preting the payoffs…

A: Given, Two Players : Player 1 and Player 2Player 1 has three strategies : T, M and BPlayer 2 has…

Q: a. (D,R,A) and (U,L,B) are the only Nash equilibria in pure strategies. b. (M,R,A) and(D,R,B)…

A: From the above calculation we can say that: Nash equilibrium=M,R,A (3,1,0) D,R,B (4,1,1)

Q: For a two-player game, the payoff function for player 1 is…

A: In the above equation player, one payoff function is increasing in the given strategy. Player 1…

Q: Our classroom needs a better webcam. A webcam benefits everyone and I am soliciting donations from…

A: The Nash equilibrium occurs when the optimal outcome of a game is one where no player has an…

Q: Derive a mixed strategy Nash equilibrium (MSNE). What is the proportion of Hawks and Doves? If the…

A: Nash equilibrium: It refers to the game in which different players interact. It helps in determining…

Q: Player 2 Cooperate (1,000, 1,000) Cheat (400, 2,000) Player 1 Cooperate Cheat (2,000, 400) (500,…

A: "Nash equilibrium in game theory occurs at a point where each player has an optimal outcome and no…

Q: A typical centipede game has (A) many pure-strategy Nash equilibria; (B) a unique Nash equilibrium…

A: Option (B) is correct

Q: Determine all of the Nash equilibria (pure-strategy and mixed-strategy equilibria) of the following…

A: Given Strategy:

Q: Penalty point in soccer. Column Defend left Defend right Kick left 50, -50 80, 80 Row Kick right 90,…

A: To find the pure strategy nash equilibrium, we use the best response method, where we underline the…

Q: Determine all of the Nash equilibria (pure-strategy and mixed-strategy equilibria) of the following…

A: First let’s find the best responses to pure strategies. We know that the first pay-off within the…

Q: What amount does each bidder bid in the Bayesian Nash equilibrium of a 2nd price auction? The…

A: Each advertiser offers a fixed amount per impression, which is compared to the other available bids,…

Q: Consider a 4-bidder auction model. The auction is second price sealed bid. However, now, the bidders…

A: Answer-

Q: In the following symmetric general sum game (2, 2) (0,0) (0,0) (0,0) (0,0) (2, 2) (0,0) (2,2) (0, 0)…

A: Given information Pay off for 2 players

Q: Consider the two-person Stag Hunt game. First, find each player's best response functions; then plot…

A: A mixed strategy Nash equilibrium includes something like one player playing a randomized strategy…

Q: Find all Nash equilibria (both pure and mixed strategy) in the following game

A: Nash Equilibrium is defined as a concept of game theory where the optimal output is obtained where…

Q: The amount $101 is available to be paid out to two players. The players must make simultaneous…

A: Nash equilibrium is an idea in game theory where each member in a noncooperative game can streamline…

Q: Find the mixed strategy Nash equilibrium by using the concept of probabilities. Player X West{W}…

A: Let the probability of of player Y be p and 1-p

Q: Consider the two Nash equilibria found above. Is any one of them a Perfect Bayesian Equilibrium…

A: the Nash balance is an idea of game hypothesis where the ideal result of a game is one where no…

Q: with probability 1-p When p = 1/4, which is a pure strategy Bayesian equilibrium: (1's strategy; 2's…

A: The theory that explains the way choices are made when there are more than one choices is called…

Q: Complete Information: Consider a set of N players participating in a sealed- bid second-price…

A: a. Yes, this is still the best response Let X be the player whose valuation is 'a'. So, if the bids…

Q: Q.1 Player 1 and player 2 choose their strategies S₁ and 52 simultaneously where s₁ € {X,Y} and s₂ E…

A: Given information Player 1 knows the value of θ= (2,-2) Player 2 θ =-2 with probability 0.8 and θ=2…

Q: Suppose 2 players play the following game infinite times in the future. What should be the minimum…

A: In game theory, the Nash equilibrium is the equilibrium outcome from which none of the players have…

Q: In the following static game represented in its normal form, where the first figure refers to the…

Q: Consider the following game in the normal form R. 0,0 0,44 0,31 M 44,0 14,14 -1,16 31,0 16,-1 1,1 a)…

A: Answer - Given in the question- A Answer - Need to find- Sets B1 and R1 B1 = 0,0 and R1 = [(0,0),…

Q: b. You and your friend are gambling and each of you have two balls: yellow and blue. If the colour…

A: From the question, it is given that Player 1 may opt for Y or B Player 2 may opt for Y or B Y means…

Q: Consider a coordination game where each of two agents picks a number between 1 and 1000. The players…

A: Prize, of the number are same=$1000

Q: Consider the symmetric two-player game: a 0, 0 b 0,0 1,1 (a) Find all the symmetric Nash equilibria,…

A: The Nash equilibrium is a theorem for decision-making which states that a player could achieve the…

Q: Is there a pure Nash equilibrium in the game? Justify the answer.

A: A Saddle Point is defined as an outcome when the outcome is minimum in its row and maximum in its…

Q: P1 R P2 3 U 8 P1 P1 R' L' R' L' 4 (a) Find subgame perfect Nash equilibria of the game above. (b)…

A: Players: {P1, P2} Actions: P1 Action = { R, L} P2 Action ={U, T} Strategies: P1 Strategy = {RR' ,…

Q: Nash Equilibrium: O Gives the highest profits. O Brings us to Pareto Optimality. Is only a mutual…

A: The concept of a best response is central to John Nash's best-known contribution, the Nash…

Q: Player 2 1 2 1 (0,2) (1,0) (0,2) Player 1 2 (1,0) (0,2) (1,0) 3 (0,2) (1,0) (0,2) 1. Find all pure.…

Q: QUESTION (1) Find all perfect Bayesian Nash equilibria and sequential equilibria of the game below.…

A: In game theory, Backward induction is an iterative process. It is a theory that reasons backward in…

Q: Does the game has any Nash equilibrium ? If your answer is "Yes", then you are required to identify…

Q: QUESTION (1) Consider the following game tree of a two-stage dynamic game. Write the players'…

A: Above game has two players - Player 1 & 2 Strategy Set of Player 1 : {A , L , R } &…

Q: Given the payoff matrix between Patrick and Millicent, find the Nash equilibrium Millicent drive…

A: The Nash equilibrium is a situation in which each player chooses an optimal strategy given the…

Q: neneh) Find and describe the Bayesian-Nash equilibrium in the following game. players in this game;…

A: From player 2's perspective, He will choose (10, 40) over (30 , 20) as 40 > 20 Similarly, player…

Q: Consider a normal form game in which player 1 has three strategies, A1, B1, C1 and player 2 has…

A: When games are shown in its natural form in game theory, the strategies of each player and the…

Q: (a) Write down all strategies of the players. Transform the game into a normal-form. Find all pure…

A: Nash equilibrium: Nash equilibrium, named after the mathematician John Forbes Nash Jr., is the most…

Q: Two athletes of equal ability are competing for a prize of $10,000. Each is deciding whether to take…

A: A Nash equilibrium illustrates a solution for a non-cooperative game involving two or more players…

Q: Which of the following statements about a Nash equilibrium is not correct? A. Each player plays a…

A: Nash equilibrium is a game theory concept that identifies the best solution in a non-cooperative…

Q: Player 2 4, 4 0,2 Player 1 M 2,0 2,2 B. 3,0 1,0 a) Find the the pure-strategy Nash equilibria b)…

A: Taking positive probability p1, p2 and 1-p1-p2 for T, M and B respectively. And q1 and 1-q1 for E…

Q: Two rival companies competing in the same market need to decide their plans for future expansion of…

Q: Use a matrix to model a two-player game of rock-paper-scissors with payoff of 1 if you win, -1 if…

A: A pure strategy Nash equilibrium (PSNE) of the game is when a player derives no benefit from…

Q: • When it comes to customs clearance of goods, customs officers and smugglers try to prevent the…

Q: Suppose 2 players play the following game infinite times in the future. What should be the minimum…

A: We have common discount factor delta for both the players. The game has unique nash equilibrium…

Q: Mixed Nash Equilibrium Player 2 C A 5,1 1,3 В 0,8 4,2 PLAYER 1 a) calculate the probability In…

A: Mixed strategy equilibrium is achieved when players use randomized strategies to achieve an…

Q: Identify the Nash Equilibria and Subgame Perfect Nash Equilibria in pure strategy of this game.…

A: In this game backward induction cannot be applied because it is not a perfect information game. It…

Q: Determine all of the Nash equilibria (pure-strategy and mixed-strategy equilibria) of the following…

A: In a pay-off matrix, player 1's pay-off is the first figure within the parantheses and player 2's…

Question

only part b please

2. Market entry . Consider a market entry game with imperfect information as depicted in the
following picture.
P1
A1
A2
A3
A4
P2
1-p\
1-q P2
BI
B2
В
B2
B3
В
B3
B4
7 7
5 5
7
4
4
4
3
13
5
3
3
10
16
(a) Write down all strategies of the players. Transform the game into a normal-form. Find all
pure strategy Nash equilibria.
(b) Find all weak-perfect Bayesian Nash equilibria in pure strategies. Do not forget the systems
of beliefs. Argue well if there is none.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

1 True or False : Every finite extensive - form game of imperfect information admits at least one pure - strategy Nash equilibrium . Justify if true or give a counter - example if not
5 Consider a first-price sealed-bid auction in which bidders valuations are independently and identically distributed according to the Uniform distribution on the interval [0, 1]. Explain what the rules of the First Price Sealed bid auction are. Set it up as a Bayesian game. Compute a symmetric Bayesian Nash equilibrium for the two bidder case.
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.
1. Identify the Nash Equilibria and Subgame Perfect Nash Equilibria in pure strategy of this game. 2. Using beliefs (p, 1−p) at P2's decision nodes in their information set, show that one of the NE is not sequentially rational.
6 Two people will select a policy that affects both of them by applying a "veto" in a sequential and alternate manner, that is: person 1 begins to veto a policy and then person 2 exercises his "veto" with the remaining policies; the process repeats until only one policy remains. Assume that there are 3 policies: X,Y,Z, and that person 1 prefers X to Y to Z and person 2 prefers Z to Y to X. a. Represents the game extensively b. Give the number of subgames C. Indicate the total strategies of the players d. find all subgame perfect nash equilibria e. Find all Nash Equilibriums.
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 location game we covered in Lecture 3. Now assume there arethree players (vendors). As we assumed in the lecture, consumers in each area choosethe closest vendor and if there are multiple closest vendors then these vendors receiveequal share of consumers in the area. Notice Si = {1, 2, 3, ...., 9} for i = 1, 2, 3. Here aresome examples of payoffs: u1(1, 1, 1) = 3, u1(1, 1, 9) = u2(1, 1, 9) = 2.25, u3(1, 1, 9) =4.5, u1(1, 5, 9) = u3(1, 5, 9) = 2.5 and u2(1, 5, 9) = 4. (a) Is s′1 = 1 strictly dominated by s′′1 = 2 for player 1?(b) Is s′1 = 1 weakly dominated by s′′1 = 2 for player 1?(c) Can you find a Nash equilibrium in pure strategies?
4. Consider a bankruptcy game with two risk neutral players where V = $800,000, C1 = $300,000, and C2 = $800,000. a. What is the Nash bargaining solution? b. What is the Kalai-Smorodinsky bargaining solution?
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.…
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.
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.
Consider the strategic form game shown. a. Assume that both players are rational. What happens?b. Assume that both players are rational and that each believes that theother is rational. What happens?c. Find the strategies that survive the ISDS.