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

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Economics 302 Silve Parviainen Intermediate Microeconomics Spring 2007 Answers to Mock Final 1G a m e T h e o r y (a) Game matrix 1 presents the game when p =7and q = 5. Since the Row player goes frst, he eliminates Tab le1 :Gamematr ix1 Column Left Right Top 10 , 77 , 10 Row Bottom 12 , 57 , 5 strategy T. (See game matrix 2) The outcomes that survive the deletion are (B, L) and (B, R). le2 ix2 Column Left Right Row Bottom 12 , , 5 (b) Game matrix 3 shows the result iF the Column player moves frst. 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 frst 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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Tab le3 :Gamematr ix3 Column Right Top 7 , 10 Row Bottom 7 , 5 le4 ix4 Column Left Right 10 , 76 , 10 Row Bottom 12 , 57 , 6 2 Externalities
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This note was uploaded on 09/27/2008 for the course ECON 302 taught by Professor Toossi during the Spring '08 term at University of Illinois at Urbana–Champaign.

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

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