11 - ECON 3600 Problem Set 1 Solutions Due Thursday,...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ECON 3600 Problem Set 1 Solutions Due Thursday, January 19. 1. Explain the difference between a strictly dominated strategy and a weakly dominated strategy. Give an example of a two-player game matrix where one player has 3 strategies, one of which is strictly dominated, and the other player has 3 strategies, one of which is weakly (but not strictly) dominated. Indicate the dominated strategies. Solution: A strictly dominated strategy is one where there is a different strategy that always gives a higher payoff than the dominated strategy, while for a weakly dominated strategy there exists an alternative strategy that is always at least as good as the dominated strategy and there is at least one case where the alternative strategy gives a higher payoff than the dominated strategy. Thus, a strictly dominated strategy is always worse than some other strategy, while a weakly dominated strategy is sometime worse, but never better than some other strategy....
View Full Document

Page1 / 3

11 - ECON 3600 Problem Set 1 Solutions Due Thursday,...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online