{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# soln8 - Econ 354K Game Theory Solutions to Problem Set No 8...

This preview shows pages 1–3. Sign up to view the full content.

1 Econ 354K Game Theory Solutions to Problem Set No. 8 1. Dutta 5.2 Pure strategy Nash equilibria: all cells with a payoff of (1,2). Each player believing that the other is equally likely to choose any of the available strategies is a mixed-strategy NE. T\B 1,2 1,3 1,4 2,3 2,4 3,4 1 0,1 0,1 0,1 1,2 1,2 1,2 2 0,1 1,2 1,2 0,1 0,1 1,2 3 1,2 0,1 1,2 0,1 1,2 0,1 4 1,2 1,2 0,1 1,2 0,1 0,1 2. Dutta 5.4: br(0) = {0,1}; br(j>0) = 0. 3. Dutta 5.5: NE = {00, 01, 10} For questions 5.4 and 5.5, you could also fill in a payoff matrix using using x y x + for player 1 and x y y + for player 2 with { } , 0,1,2,3,4 x y to determine the best responses and the Nash equilibria 1\2 0 1 2 3 4 0 0.0 , 0.0 1.0 , 0.0 1.4 , -0.6 1.7 , -1.3 2.0 , -2.0 1 0.0 , 1.0 0.4, 0.4 0.7, -0.3 1.0, -1.0 1.2, -1.8 2 -0.6, 1.4 -0.3, 0.7 0.0, 0.0 0.2, -0.8 0.4, -1.6 3 -1.3, 1.7 -1.0, 1.0 -0.8, 0.2 -0.6, -0.6 -0.4, -1.4 4 -2.0, 2.0 -1.8, 1.2 -1.6, 0.4 -1.4, -0.4 -1.2, -1.2 4. Three-player game: (ABC, CBS, NBC) Eliminate strictly dominated strategies first. NBC: live CBS Live taped live .42,.34,.24 .37,.40,.23 ABC taped .40 ,.34,.26 .34, .26,.40 NBC: taped CBS Live taped live .34,.26,.40 .60,.22,.18 ABC taped .24 ,.60,.16 .42, .34,.24 So, ABC eliminates “taped”.

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

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

{[ snackBarMessage ]}