Tutorial 9 memo - Question 1 Dominance The following table...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Question 1: Dominance The following table shows only player 1’s payoffs. Find a strictly dominated action in player 1’s action set. left right up 1 0 middle 2 1 down 1 3 Answer to question 1 Up is strictly dominated by middle. No other action is strictly dominated by another. Question 2: Multiple Nash equilibrium Two people wish to go out together. Two concerts are available: one by Mandoza; the other by the Springbok Nude Girls. One person prefers Mandoza; the other the Springbok Nude Girls. If they go to different concerts, each of them is equally unhappy listening to either performer. a) Represent the situation through a strategic game table b) Find all Nash equilibria Answer to question 2 See fig19.1, page 19; and section 2.7.2 in Osborne. Question 3: Cournot, monopoly and industry profits Consider an industry with two firms, producing an homogeneous good, and faced by the inverse demand function P ( Q ) = α − Q Where . Suppose 2 1 q q Q + = 100 = α and each firm has constant marginal...
View Full Document

{[ snackBarMessage ]}

Page1 / 3

Tutorial 9 memo - Question 1 Dominance The following table...

This preview shows document pages 1 - 2. Sign up to view the full document.

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