Seminar+1+-+indicative+solutions.pdf - Indicative answers...

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Indicative answers to Seminar 1 (Week 5) 1. Player 2 C D Player 1 A 3, 4 2, 3 B 4, 1 1, 0 a) Player 1 has no strictly dominated strategies. For P2, C dominates D. b) Best responses are underlined above. The single PSNE is (B, C). 2. Player 2 y z Player 1 Y 0, 40 40, 10 Z 30, 20 30, 30 a) We cannot simplify the game by IDSDS. b) There are no PSNE. Best responses are underlined above. c) The MSNE sees P1 play Y with ¼ probability and Z with ¾ probability; P2 play y with ¼ probability and z with ¾ probability. 3. Player 2 d e f Player 1 a 1, 0 1, 0 0, 1 b 0, 0 0, 1 0, 0 c 0, 0 0, 0 0, 0