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answers-mock-final - Economics 302 Intermediate...

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Economics 302 Silve Parviainen Intermediate Microeconomics Spring 2007 Answers to Mock Final 1 Game Theory (a) Game matrix 1 presents the game when p = 7 and q = 5. Since the Row player goes first, he eliminates Table 1: Game matrix 1 Column Left Right Top 10 , 7 7 , 10 Row Bottom 12 , 5 7 , 5 strategy T. (See game matrix 2) The outcomes that survive the deletion are (B, L) and (B, R). Table 2: Game matrix 2 Column Left Right Row Bottom 12 , 5 7 , 5 (b) Game matrix 3 shows the result if the Column player moves first. He will eliminate strategy L. The outcomes that survive the deletion are (T, R) and (B, R). Only (B, R) is in common with (a). (c) Game matrix 4 presents the game when p = q = 6. In this case, there are no weakly dominated strategies. Moreover, it doesn’t matter who chooses first in this game since there are strictly dominated strategies for both players. T is strictly dominated by B for the Row player, and L is strictly dominated by R for the Column player. Therefore, the solution is (B, R) no matter who starts the game.
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Table 3: Game matrix 3 Column Right Top 7 , 10 Row Bottom 7 , 5 Table 4: Game matrix 4 Column Left Right Top 10 , 7 6 , 10 Row Bottom 12 , 5 7 ,
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