Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Question
Chapter 20.1, Problem 2Q
To determine
The strategy of B when A confesses.
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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
Please find herewith a payoff matrix. In each cell you find the payoffs of the players associated with a particular strategy combination: The first entry is the payoff of player 1, the second entry is the payoff of player2.
Player 2
t1
t2
t3
Player 1
S1
3, 4
1, 0
5, 3
S2
0, 12
8, 12
4, 20
S3
2, 0
2, 11
1, 0
Suppose both players select their strategies (S1, S2 or S3 for player 1 and t1, t2 or t3 for player 2) simultaneously and that the game is played once. In your explanation to the questions below, please do refer to the figures in the matrix.
Suppose player 2 could move before player 1 (i.e. has a first mover advantage). In your explanation to the questions below, please do refer to the figures in the matrix.
What strategy would (s)he select?
Is it really an ‘advantage’ for player 2 to move first? Or does player 2 benefit from being the second mover (and hence player 1 moving first)? I.e. for this question, do not make a comparison to the outcome of the…
Consider a payoff matrix of a game shown below. In each cell, the number on the left is a payoff for Player A and the number on the right is a payoff for Player B.
refer to image and pick answer
Chapter 20 Solutions
Microeconomics
Ch. 20.1 - Prob. 1QCh. 20.1 - Prob. 2QCh. 20.1 - Prob. 3QCh. 20.1 - Prob. 4QCh. 20.1 - Prob. 5QCh. 20.1 - Prob. 6QCh. 20.1 - Prob. 7QCh. 20.1 - Prob. 8QCh. 20.1 - Prob. 9QCh. 20.1 - Prob. 10Q
Ch. 20.A - Netflix and Hulu each expects profit to rise by...Ch. 20.A - Prob. 2QECh. 20 - Prob. 1QECh. 20 - Prob. 2QECh. 20 - Prob. 3QECh. 20 - Prob. 4QECh. 20 - Prob. 5QECh. 20 - Prob. 6QECh. 20 - Prob. 7QECh. 20 - Prob. 8QECh. 20 - Prob. 9QECh. 20 - Prob. 10QECh. 20 - Prob. 11QECh. 20 - Prob. 12QECh. 20 - Prob. 13QECh. 20 - Prob. 14QECh. 20 - Prob. 15QECh. 20 - Prob. 16QECh. 20 - Prob. 1QAPCh. 20 - Prob. 2QAPCh. 20 - Prob. 3QAPCh. 20 - Prob. 4QAPCh. 20 - Prob. 5QAPCh. 20 - Prob. 6QAPCh. 20 - Prob. 1IPCh. 20 - Prob. 2IPCh. 20 - Prob. 3IPCh. 20 - Prob. 4IPCh. 20 - Prob. 5IPCh. 20 - Prob. 6IPCh. 20 - Prob. 7IP
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Similar questions
- Consider the following game. There are two payers, Player 1 and Player 2. Player 1 chooses a row (10, 20, or 30), and Player 2 chooses a column (10/20/30). Payoffs are in the cells of the table, with those on the left going to Player 1 and those on the right going to player 2. Suppose that Player 1 chooses his strategy (10, 20 or 30), first, and subsequently, and after observing Player 1’s choice, Player 2 chooses his own strategy (of 10, 20 or 30). Which of the following statements is true regarding this modified game? I. It is a simultaneous move game, because the timing of moves is irrelevant in classifying games.II. It is a sequential move game, because Player 2 observes Player 1’s choice before he chooses his own strategy.III. This modification gives Player 1 a ‘first mover advantage’. A) I and IIB) II and IIIC) I and IIID) I onlyE) II onlyarrow_forwardTwo players play the following game for infinite times. For the player to continue to cooperate what would be the ranges of their discount factor, δ_1 and δ_2, respectively? cooperate betray cooperate (10,20) (-25,30) betray (15, -22) (-12, -18)arrow_forwardSuppose that Kim and Nene are both in the public eye. They get offers to sell secrets of the other to tabloids. If both keep the secrets, they are both better off than if they get exposed. If only one is exposed, the other person is better off than if no one was exposed. Their payoffs from each option are given in the payoff matrix. Suppose that Nene and Kim play the game over four television seasons, where each season is a new game. Consider the scenarios. Remember, a tit‑for‑tat strategy is one where the person starts by cooperating and then plays whatever strategy the other firm played last. Over four seasons, how much will Nene make if she and Kim both play tit‑for‑tat? $ Over four seasons, how much does Nene make if she always exposes and Kim plays tit‑for‑tat? $ Over four seasons, how much will Nene make if she plays a tit‑for‑tat strategy and Kim always exposes? $ Over four seasons, how much will Nene make if she and…arrow_forward
- Consider a game where player A moves first, choosing between Left and Right. Then, after observing player A’s choice, player B moves next choosing between Up and Down. Which of the following is true? This is a game where players A and B have the same number of strategies. Player A will get a higher payoff than player B as A moves first. This is game will only have one Nash equilibrium. This is a game of perfect information.arrow_forwardConsider the attached payoff matrix:a. Does Player A have a dominant strategy? Explain why or why not.b. Does Player B have a dominant strategy? Explain why or why not.arrow_forwardFor a two-player game, the payoff function for player 1 is V1(x1, x2) = x1 + 10x1x2and for player 2 is V2(x1, x2) = x2 + 20x1x2.Player 1’s strategy set is the interval [0,100], and player 2’s strategy set is theinterval [0,50]. Find all Nash equilibria.arrow_forward
- We consider a game between two players, Alice and Bob. Alice chooses a number x (between -infinity and +infinity), and Bob chooses a number y (between -infinity and +infinity). Alice's payoff is given by the following function: 35 x + 87 x y - 95 x squared. (the last entry is "x squared".) Bob's payoff is given by the following function: 30 y + 42 x y + 75 y squared. (the last entry is "y squared".) Calculate Alice's strategy in the (unique) Nash equilibrium of this game.arrow_forwardDesign the payoffff matrix of a game with no Nash Equilibria. The game should have 2 players, 2 strategies for each player, and the payoffffs for each player should be either 0 or 1.arrow_forwardConsider a simultaneous move game with two players. Player 1 has three possible actions (A, B, or C) and Player 2 has two possible actions (D or E.) In the payoff matrix below, each cell contains the payoff for Player 1 followed by the payoff for Player 2. Identify any pure strategy Nash Equilibria in this game. If there are none, state this clearly.arrow_forward
- Consider a modification of driving conventions, shown in the figure below, in which each player has a third strategy: to zigzag on the road. Suppose that if a player chooses zigzag, the chances of an accident are the same whether the other player drives on the left, drives on the right, or zigzags as well. Let that payoff be 0, so that it lies between –1, the payoff when a collision occurs for sure, and 1, the payoff when a collision does not occur. Find all Nash equilibria.arrow_forwardAlice chooses action a or action b, and her choice is observed by Bob. If Alice chooses action a, then Alice receives a payoff of 5 and Bob receives a payoff of 4. If Alice chooses action b, then Bob chooses action c or action d. If Bob chooses action c, then Alice receives a payoff of 10 and Bob receives a payoff of 5. If Bob chooses action d, then Alice receives a payoff of 0 and Bob receives a payoff of 6. Which of the following are correct statements about the game described in the previous paragraph? (Mark all that are correct.) Alice's backward induction payoff is 10. This is a prisoners' dilemma. This game has imperfect information. Alice's backward induction payoff is 0. This is a promise game. Bob's backward induction payoff is 4. Bob's backward induction payoff is 6. This is a threat game.arrow_forward
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