hw9 - Homework Econ 221 1. Write down the pay-off matrix...

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Homework Econ 221 1. Write down the pay-off matrix for Rock paper scissors where you get a payoff of 1 for winning, -1 for losing and zero for a draw. Is there a pure strategy Nash Equilibrium? Rock Paper Scissors Rock Paper Scissors 2. Consider a non-cooperative simultaneous game between me and my wife. I get to pick the food for the evening, but she gets to pick the drink. The payoff matrix is below (I’m player 1, she is player 2). Solve for the pure strategy nash equilibrium. Beer Whiskey Wine Pizza 5, 1 4, 3 1, 2 Steak 4, 3 7, 4 1, 5 Pasta 1, 0 0, 1 2, 2 Just for fun (i.e. not on the test) what would happen if my wife got to pick the drink first, then I got to observe her choice and make a selection? What if the order was reversed? 3. More Left Middle Right Up 1, -2 -2,1 0,0 Middle -2, 1 1, -2 0,0 Down 0,0 0,0 1,1 4. Suppose that an incumbent firm gets to choose whether to compete via Bertrand price competition or via Quantity Competition. A potential entrant must choose to enter or
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This note was uploaded on 02/20/2012 for the course ECON 221 taught by Professor Gordanier during the Fall '08 term at South Carolina.

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hw9 - Homework Econ 221 1. Write down the pay-off matrix...

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