This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
Unformatted text preview: 14.12 Game Theory Muhamet Yildiz Fall 2005 Solution to Homework 5 1. Answer to Problem 1 (a) The game can be written formally as follows: Actions space: A 1 = { X,Y,Z } , A 2 = { L,R } Types space: T 1 = { t 1 } , T 2 = { = 1 , = 1 } Beliefs: p ( = 1  t 1 ) = p ( = 1  t 1 ) = 1 / 2 and p ( t 1  1 ) = p ( t 1  2 ) = 1 Finally, the payoffs for the two players are given by: u 1 ( X,L ; = 1 ,t 1 ) = 3 and u 2 ( X,L ; = 1 ,t 1 ) = 1 u 1 ( Y,L ; = 1 ,t 1 ) = 2 and u 2 ( Y,L ; = 1 ,t 1 ) = 2 u 1 ( Z,L ; = 1 ,t 1 ) = 0 and u 2 ( Z,L ; = 1 ,t 1 ) = 0 u 1 ( X,R ; = 1 ,t 1 ) = 0 and u 2 ( X,R ; = 1 ,t 1 ) = 0 u 1 ( Y,R ; = 1 ,t 1 ) = 2 and u 2 ( Y,R ; = 1 ,t 1 ) = 1 u 1 ( Z,R ; = 1 ,t 1 ) = 3 and u 2 ( Z,R ; = 1 ,t 1 ) = 1 u 1 ( X,L ; = 1 ,t 1 ) = 3 and u 2 ( X,L ; = 1 ,t 1 ) = 1 u 1 ( Y,L ; = 1 ,t 1 ) = 2 and u 2 ( Y,L ; = 1 ,t 1 ) = 2 u 1 ( Z,L ; = 1 ,t 1 ) = 0 and...
View
Full
Document
This note was uploaded on 11/28/2011 for the course ECONOMICS 114.126 taught by Professor Muhammadyildiz during the Spring '05 term at University of Massachusetts Boston.
 Spring '05
 MuhammadYildiz
 Game Theory

Click to edit the document details