HW2A - Econ 227-02 Answers to HW2 U4 Use successive...

Econ 227-02
Answers to HW2
U4. Use successive elimination of dominated strategies to solve the following game.
Explain the steps you followed.
Column
Left Middle Right
Row Up 4, 3 2, 7 0 , 4
Down 5 , 0 5 , –1 –4, –2
For Column, Right is dominated by Middle. With Right eliminated, Down becomes a
dominant strategy.
Column
Left Middle
Row Up 4, 3 2, 7
Down 5 , 0 5 , –1
With Up eliminated, Left is the dominant strategy. The Nash equilibrium is Down, Left.
Column
Left Middle
Row Down 5 , 0 5 , –1
U7. The game known as the Battle of the Bismarck Sea (names for that part of the
southwestern Pacific Ocean separating the Bismarck Archipelago from Papua-New
Guinea) summarizes a well-known game actually played in a naval engagement between
the United States and Japan during World War II. In 1943, a Japanese admiral was
ordered to move a convoy of ships to New Guinea; he had to choose between a rainy
northern route and a sunnier southern route, both of which required three days’ sailing
time.