# Practice Problem 1 Answers - Selma Games Answers A. B. The...

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Selma Games Answers A. B. The model predicts that the marchers go forward and the police block. Both sides maximize their minimum payoff by doing so. (Note also that going forward is a dominant strategy for the marchers, and blocking is a dominant strategy for the police.) C. Yes. Neither side would want to move unilaterally from this outcome. D. Police Step Back Block Marchers Stop 3,3 2,4 Forward 4,2 1,1 E. Commitment (as in playing chicken). If the police committed credibly to blocking, then the marchers' rational choice in this model would be to stop (2) rather than go forward (1).

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ii. The "maximin" strategy is to secure the best "worst" outcome. In the above game, each can avoid the worst payoff of 1 by going to their preferred location: Dorothy to Oz and Toto to Munchkinland. Unfortunately for Dorothy and Toto, if each use the maximin strategy, they will not find each other, and the result is a (2,2) outcome. Each will wish they went to the other place, so it is not an equilibrium outcome. The two equilibria are (Oz, Oz) and (Munch, Munch). iii. The message should say: "I'm going to Munchkinland." Toto has an opportunity to make a non-negotiable statement as to where to meet. Dorothy can not respond, and knowing that Toto has claimed Munchkinland as the meeting place, her best response is to go to Munchkinland. She receives a payoff of 3, and Toto 4. By committing to a location, Toto effectively secures a "first-mover" advantage, and receives his best possible outcome.

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Answers to Land Deals A. The zone of possible agreement (ZOPA) for this 2 party, 1 issue negotiation is the
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