# soln7 - Econ 354K Game Theory Solutions to Problem Set No 7...

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1 Econ 354K Game Theory Solutions to Problem Set No. 7 1. Dutta 3.8: Art Auction - Strategies Strategies available for both bidders: 2,000; 3,000; 4,000; 5,000; 6,000; 7,000; 8,000; 9,000. .. 2. Dutta 3.9: Art Auction – Strategic Form We restrict attention to strategies up to 8,000. 1\2 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2,000 (4000,0) (0,5000) (0,5000) (0,5000) (0,5000) (0,5000) (0,5000) 3,000 (4000,0) (3000,0) (0,4000) (0,4000) (0,4000) (0,4000) (0,4000) 4,000 (4000,0) (3000,0) (2000,0) (0,3000) (0,3000) (0,3000) (0,3000) 5,000 (4000,0) (3000,0) (2000,0) (1000,0) (0,2000) (0,2000) (0,2000) 6,000 (4000,0) (3000,0) (2000,0) (1000,0) (0,0) (0,1000) (0,1000) 7,000 (4000,0) (3000,0) (2000,0) (1000,0) (0,0) (-1000,0) (0,0) 8,000 (4000,0) (3000,0) (2000,0) (1000,0) (0,0) (-1000,0) (-2000,0) … 3. Dutta 3.22: Art Auction - Dominance (1) Player 1 gets same payoff from bidding \$6,000 or from bidding \$5,000, no matter what Player 2 does. So there’s no dominance.

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soln7 - Econ 354K Game Theory Solutions to Problem Set No 7...

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