Walmart Н L' (0, 2) (1, 1) (2,0) НЕВ Н Suppose that Walmart believes with probability i that HEB will play strat- egy H, with probability i that HEB will play L. • Calculate Walmart's expected payoff if Walmart plays any one of its pure strategies. • Calculate Walmart's expected payoff if it chooses to play H' with probability and play L' with probability . Now assume with probability 2 that HEB will play L. HEB will play strategy H, with probability • Calculate Walmart's expected payoff if Walmart plays any one of its pure strategies. • Calculate Walmart's expected payoff if it chooses to play H' with probability and play L' with probability . Is there any strict or weakly dominated strategy for HEB? Try to find all of them. Is there any strict or weakly dominated strategy for Walmart? Try to find all of them.

Walmart Н L' (0, 2) (1, 1) (2,0) НЕВ Н Suppose that Walmart believes with probability i that HEB will play strat- egy H, with probability i that HEB will play L. • Calculate Walmart's expected payoff if Walmart plays any one of its pure strategies. • Calculate Walmart's expected payoff if it chooses to play H' with probability and play L' with probability . Now assume with probability 2 that HEB will play L. HEB will play strategy H, with probability • Calculate Walmart's expected payoff if Walmart plays any one of its pure strategies. • Calculate Walmart's expected payoff if it chooses to play H' with probability and play L' with probability . Is there any strict or weakly dominated strategy for HEB? Try to find all of them. Is there any strict or weakly dominated strategy for Walmart? Try to find all of them.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.7P

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