problem set3 solution

Any attempt on improving the first outcome would make

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Unformatted text preview: attempt on improving the first outcome would make the row player strictly worse off. Any attempt to change from the second outcome would hurt the column player. ii) No, because none of the strategies is strictly dominated. iii) No pure strategy NE. Game c Bring a Cake Bring Chicken Make Tiramisu -1,-1 3,2 Make Steak 2,1 0,0 i) There is a unique Pareto efficient outcome: (Chicken, Tiramisu). ii) No. None of the strategies is strictly dominated. iii) Two pure strategy NE’s: (Chicken, Tiramisu) and (Cake, Steak) Game d Wear Blue Wear Red Wear White 0,0 0,0 Wear Black 0,0 0,0 i) Every one of the four outcomes is Pareto efficient. ii) No. None of the strategies is strictly dominated. iii) Four pure strategy NE’s: (Blue, White), (Blue, Black), (Red, White), (Red, Black) 4. Consider the following game: Top Bottom Left 0,0 1,2 Right 3,-1 x,y a) For what values of x and y is the game dominance solvable? For deletion starting with Top: For deletion starting with Right: b) For what values of x and y is (Top, Left) a Nash equilibrium? No values...
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