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ps10_09

# ps10_09 - Cornell University Economics 3130 Problem Set 10...

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Cornell University Economics 3130 Problem Set 10 Due 4/24/09 1. Using any method, find all the Nash equilibria (in pure and mixed strategies) of the game. Briefly explain the steps you take in finding the equilibria. Player 2 Player 1 L C R T 3,4 4,2 2,1 M 1,7 3,8 0,0 B 1,0 1,1 4,3 2. Find all equilibria of the following game. Player 2 Player 1 L C R U 4,2 3,2 0,4 M 1,1 2,0 2,1 D 2,4 3,1 6,0 3. You (player 1) and a friend (player 2) are in an Italian restaurant, and the owner offers both of you an 8-slice pizza under the following condition: Each one of you must simultaneously announce how many slices you would like to have; that is, each player i ∈ { 1 , 2 } names his or her desired amount of pizza slices 0 s i 8. If s 1 + s 2 8 then the two of you get your demands (and any remainder is eaten by the owner). If s 1 + s 2 > 8, then the players get nothing. Both you and your friend prefer more pizza to less, but do not care about the amount of pizza eaten by the other. How many pure-strategy Nash equilibria are there in this game? What are they? Rank the equilibria in your order of preference. 4. Suppose the demand curve in a local cable market is

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ps10_09 - Cornell University Economics 3130 Problem Set 10...

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