old Midterm 1 Answers

old Midterm 1 Answers - (given other player’s response to...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
SP10 Midterm 1 Answers: True or False: T F T F F T T F F F Short Answer: 1. NE = profile of strategies such that each player’s strategy maximizes his or her payoff given the other player’s strategies. To be assured of a NE we need to assume the players are rational and have accurate beliefs about other players’ strategies. 2. Mixed Strategy = a strategy which randomizes over pure strategies. There is no incentive to use a mixed strategy in the short run (you can say to be unpredictable but not that it gets you a higher payoff), in the long run the incentive is to be unpredictable, stability, not let other player get advantage, maximize payoff
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 4
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: (given other player’s response to your actions), etc. Problems: 1. 2. a. (All choose High) and (All choose Low) are the NE because both of those strategy profiles are such that no player can get a higher payoff by deviating. b. Using Payoff Dominance (All choose High) is the selected equilibrium because each player’s payoff is higher in that equilibrium. Using stability, (All choose Low) is the selected equilibrium because the players are guaranteed their payoff no matter what the other players do. 3. a. No dominant strategies b. A is dominated (by D) and W is dominated (by Y) c. No pure strategy NE d....
View Full Document

This note was uploaded on 02/24/2011 for the course ECO 4400 taught by Professor Lightle during the Fall '10 term at FSU.

Page1 / 4

old Midterm 1 Answers - (given other player’s response to...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online