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Unformatted text preview: 2. What are the two bundles oered and their corresponding fees? (d) Using isoprot and indierence curves, graph your answers to (a) and (c). 2. Consider the two player game below where a 2 L C R T 3 , 1 a, 0 7 ,-1 1 M a, 2 , 5 7 , 1 B a-1 , 7 1 , 7 6 , 6 (a) Find all pure strategy Nash equilibria (b) Suppose a = 0. Find a mixed strategy equilibrium. Now suppose a =-1. Again nd a mixed strategy equilibrium. What is the intuition for how a changes the mixed strategy equilibrium? (c) Suppose now 1 gets to move rst. Draw the extensive form game. Find all subgame perfect Nash equilibria and one Nash equilibrium that is not subgame perfect. 1...
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- Fall '09