Unformatted text preview: U high quality low quality buy 6,10 u 2,4 dont buy 0,2 0,0 (buyers payoff, sellers payoff) Game B: Buyer u Seller U high quality low quality buy 6,4 u 2,10 dont buy 0,0 0,2 (buyers payoff, sellers payoff) a . Are there any dominant strategies for the seller and/or the buyer in game A? Are there any in game B? If yes, identify them. What is the Nash equilibrium of game A, what is the Nash equilibrium of game B? b . Now suppose that the Buyer does not know whether she is playing Game A or Game B. Her beliefs are that she plays Game A with probability and Game B with probability . Draw the game tree. c . Derive the Bayesian Nash equilibrium of the incompleteinformation game. 3 . Derive the (mixedstrategy) Nash equilibrium of the following extensiveform game between player 1 and player 2: Player 1 u Player 2 U A B C A 0, 1 1, 0 1, 0 B 2, 0 0, 2 2, 0 C 3, 0 3, 0 0, 3 4 . Jehle/Reny, exercises 7.16 and 7.17....
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 Spring '10
 hazz
 Game Theory, Auction

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