Unformatted text preview: eliminate M. R weakly dominates L eliminate L. T strictly dominates B eliminate B. The IEDS solution is (T, R). C. T strictly dominates both M and B eliminate M and B. The IEDS solutions are (T, L) and (T, R). The game has two NE: (T, L) and (T, R). HW 2 1. a. Player 2 always chooses D. b. Player 1 chooses C if 3a > 1+ a; D if 1+ a > 3a; and is indifferent between C and D if 3a = 1+ a. c. The NE of the game are: (C, D) if a > ½; (D, D) if a < ½ ; and (C,D) and (D,D) if a = ½....
View Full Document
- Winter '10
- Game Theory, M. R, HW Solutions HW, IEDS solution