ECON
Homework 1

# Homework 1 - ECON 398 HOMEWORK 1 Professor Ozdenoren 1 For...

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ECON 398 HOMEWORK 1 Professor Ozdenoren 1) For the following games. List the strategies available to all players. What is the equilibrium outcome? What are the equilibrium strategies? a) 0,4 -1,-1 2,2 1 2 Out In Accomodate Price War b) U D L R L R l r 1 1 2 2 1,4 5,2 3,3 2,0 6,2 2) Consider the following football example: The Offense can choose to run or pass, and the defense can play run defense, play pass defense, or blitz. The game is sequential: the offense goes first, then the defense, and finally, IF (AND ONLY IF) the defense plays Blitz, the offense can choose to change their play from run to pass. The payoffs are: (2,-2) if offense plays run and defense plays run; (5,-5) if offense plays run, and defense plays pass; (15, -15) if the offense plays run, the defense plays blitz, and the offense stays with the run; (-5, 5) if the offense plays run, the defense plays blitz, and the offense changes to pass; (8, -8) if the offense plays pass, and the defense plays

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