hw210 - 14.12 Game Theory Prof. Muhamet Yildiz Fall 2010...

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14.12 Game Theory Prof. Muhamet Yildiz Fall 2010 Homework 2 Due on 10/12/2010 (in class) Youneedtoshowyourworkina l lquest ions . 1. Consider the following game: LM N R A (3 2) (0 0) (6 0) (0 0) B (0 0) (2 4) (1 2) (0 0) C (1 4) (1 3) (0 5) ( 1 0) D (0 0) (0 0) (0 1) (0 0) (a) Compute the set of rationalizable strategies. (b) Find all Nash equilibria (including those in mixed strategies). 2. Solve the following game using backward induction: 3. Two telecommunication companies, namely AmonRa and Bob’s, are competing in an auction to buy the right to use a particular frequency in Massachusetts. AmonRa is a new company while Bob’s is an incumbent company and uses the same frequency in Connecticut already, which makes the frequency in MA more valuable. The value of the frequency is for AmonRa and  for Bob’s. In the auction, the
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hw210 - 14.12 Game Theory Prof. Muhamet Yildiz Fall 2010...

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