EBK PRINCIPLES OF MICROECONOMICS
11th Edition
ISBN: 8220100792908
Author: Fair
Publisher: YUZU
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Question
Chapter 14, Problem 6P
(a)
To determine
Dominant strategy
(b)
To determine
Strategy
(c)
To determine
Strategy opted.
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Students have asked these similar questions
Consider the following payoff matrix that is below :
A. Does Player A have a dominant startegy? Explain why or why not
b. Does player B have a dominant strategy? Explain why or why not.
Player B Strategy
1
2
Player A Strategy
1
$2,000 \ $1,000
-$1,000 \ -$2,000
2
-$2,000 \ -$1,000
$1,000 \ $2,000
Consider the game shown below. In this game, players 1 and 2 must move at the same time without knowledge of the other player’s move. Player 1’s choices are shown in the row headings (A, B, C), Player 2’s choices are shown in the column headings (D, E, F). The first payoff is for the row player (Player 1) and the second payoff is for the column player (Player 2).
Player 2
Player 1
D
E
F
A
6, 8
4, 7
2, 9
B
2, 3
2, 6
4, 7
C
5, 4
7, 5
3, 6
Assume a Hawk -Dove game with the following payoff matrix, where the first entry is Animal A’s payoff, and the second entry is Animal B’s payoff:
Animal A (rows)/Animal B (columns)
Hawk
Dove
Hawk
(-5,-5)
(10,0)
Dove
(0,10)
(4,4)
An animal that plays Hawk will always fight until it wins or is badly hurt. An animal that plays Dove makes a bold display but retreats if his opponent starts to fight. If two Dove animals meet they share.
Explain why there cannot be an equilibrium where all animals act as Doves.
Explore whether there are any Nash equilibria in pure strategies and explain which these are and why.
Derive a mixed strategy Nash equilibrium (MSNE). What is the proportion of Hawks and Doves? If the proportion of Hawks in the population of animals is greater than the mixed strategy equilibrium proportion you calculated, which strategy does better, Hawks of Doves?
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Similar questions
- A game involves two players: player A and player B. Player A has three strategies a1, a2 and a3 while player B has three strategies b1, b2 and b3. Player B b1 b2 b3 a1 -40,30 70,20 -10,120 Player A a2 40,60 80,80 60,20 a3 -30,40 -50,110 150, -70 Assuming that this is a one-time game, answer the following questions: Is there any dominant strategy for each player? What is the secure strategy of each player. What is the Nash equilibrium of the game?arrow_forwardConsider the game shown below. In this game, players 1 and 2 must move at the same time without knowledge of the other player’s move. Player 1’s choices are shown in the row headings (A/B), Player 2’s choices are shown in the column headings (C/D). The first payoff is for the row player (Player1) and the second payoff is for the column player (Player 2). Player 2 Player 1 C D A 8, 3 2, 4 B 7, 4 3, 5 Pick the correct answer: Player 1: Has a dominant strategy to choose A Has a dominant strategy to choose B Has a dominant strategy to choose C Has a dominant strategy to choose D Does not have a dominant strategy Player 2: Has a dominant strategy to choose A Has a dominant strategy to choose B Has a dominant strategy to choose C Has a dominant strategy to choose D Does not have a dominant strategy The Nash equilibrium outcome to this game is: A/C A/D B/C B/D There is no pure strategy Nash equilibrium for this gamearrow_forward
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