EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Chapter 5.6, Problem 2MQ
To determine
To analyze: The reason that “Boxing” or “Ballet” is not a complete description of the second mover’s strategy is to be determined.
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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
Now answer the following questions:
Perform iterative elimination of dominated strategies on the game. Draw the new table for each iteration as shown in the lecture video. Write corresponding actions at left and up of the table. Explain why are you removing each row or column. You should reach a 2*2 game. Rewrite the table separately.
From the 2*2 game you get in question 1, find a mixed strategy σ1=(p,1−p) for Player 1 that will make Player 2 indifferent about two actions.
Find a mixed strategy σ2=(q,1−q) for Player 2 that will make Player 1 indifferent about two actions.
If the players are playing the mixed strategies σ1 and σ2, they both will indifferent about their strategies, hence the strategy profile (σ1,σ2) will be a Nash Equilibrium of this game. Find the expected utility for both Player 1 u1(σ1,σ2) and Player 2 u2(σ1,σ2) at this Nash Equilibrium.
Can you explain what the Pure Coordination Game is and provide an example of one?
Chapter 5 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 5.3 - Prob. 1TTACh. 5.3 - Prob. 2TTACh. 5.4 - Prob. 1MQCh. 5.4 - Prob. 2MQCh. 5.4 - Prob. 3MQCh. 5.4 - Prob. 4MQCh. 5.5 - Prob. 1TTACh. 5.5 - Prob. 2TTACh. 5.5 - Prob. 1MQCh. 5.5 - Prob. 2MQ
Ch. 5.6 - Prob. 1TTACh. 5.6 - Prob. 2TTACh. 5.6 - Prob. 1MQCh. 5.6 - Prob. 2MQCh. 5.6 - Prob. 1.1TTACh. 5.6 - Prob. 1.2TTACh. 5.6 - Prob. 1.1MQCh. 5.6 - Prob. 1.2MQCh. 5.9 - Prob. 1MQCh. 5.9 - Prob. 2MQCh. 5.9 - Prob. 1TTACh. 5.9 - Prob. 2TTACh. 5 - Prob. 1RQCh. 5 - Prob. 2RQCh. 5 - Prob. 3RQCh. 5 - Prob. 4RQCh. 5 - Prob. 5RQCh. 5 - Prob. 6RQCh. 5 - Prob. 7RQCh. 5 - Prob. 8RQCh. 5 - Prob. 9RQCh. 5 - Prob. 10RQCh. 5 - Prob. 5.1PCh. 5 - Prob. 5.2PCh. 5 - Prob. 5.3PCh. 5 - Prob. 5.5PCh. 5 - Prob. 5.6PCh. 5 - Prob. 5.7PCh. 5 - Prob. 5.8PCh. 5 - Prob. 5.9PCh. 5 - Prob. 5.10P
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