PS1-solutions

PS1-solutions - Sketch of Solutions to Problem Set 1 Ying...

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Sketch of Solutions to Problem Set 1 Ying Chen, ECN 416 Game Theory 1. Consider the following game: 2  1 3 1 1 0 2 1 3 1 2 2 1 0 0 1 1 2 3 0 (a) Assume that both players are rational. What happens? If player 1 is rational, he won’t play since is strictly dominated by . If player 2 is rational, he won’t play since is strictly dominated by . (b) Assume that both players are rational and that each believes that the other is rational. What happens? Player 1 won’t play since it is now strictly dominated by . Player 2 won’t play since it is now strictly dominated by . (c) Find the strategies that survive the iterated deletion of strictly dominated strate- gies. (   ) 2. Iterated Deletion of (weakly) Dominated Strategies Consider the following two-player game 2  1 1 0 1 3 1 1 1 0 2 2 1 3 1 3 3 1 2 2 (a) Are there any strictly dominated strategies? Are there any weakly dominated strategies? If so, explain what dominates what and how. No strictly dominated strategies. Weakly dominated strategies: weakly dominates ; weakly dominates . (b) After deleting any strictly or weakly dominated strategies, are there any strictly or weakly dominated strategies in the ‘reduced’ game? If so, explain what dominates what and how. What is left?
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After deleting and , weakly dominates and weakly dominates .Wha t s left is (  ) .
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This note was uploaded on 04/04/2010 for the course ECN 416 taught by Professor Y.chen during the Spring '10 term at ASU.

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PS1-solutions - Sketch of Solutions to Problem Set 1 Ying...

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