week3_problem - (b) Find Pareto efcient outcomes. (c) Find...

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Econ 101 Microeconomic Theory Professor Jernej Copic Exercise for TA section: week 3 Hyo Sang Kim 1. (Ultimatum game) Consider the following two player game in extensive form. Player 1 proposes how to divides 4 dollars between them, and then player 2 can either accept or reject this proposal. If player 2 rejects, neither player receives anything. If player 2 accepts, the money is split according to the proposal. (a) Find the subgame perfect Nash equilibrium.
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Unformatted text preview: (b) Find Pareto efcient outcomes. (c) Find the Nash equilibria. 2. (Coordination game) Consider the following game in normal form. l r U (3,2) (-1,1) D (0,-2) (1,4) (a) Find the pure and mixed strategy Nash equilibrium. (b) Compute the expected payoff of each player. (c) Is the mixed strategy Nash equilibrium Pareto efcient? (Compare all pure strategies and mixed strategy Nash equilibrium.) 1...
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This note was uploaded on 02/06/2012 for the course ECON 101 taught by Professor Buddin during the Spring '08 term at UCLA.

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