Homework4

Homework4 - Homework 4 Additional Questions: Game Theory 1....

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Homework 4 Additional Questions: Game Theory 1. What are the Nash equilibria in this game? Player 2 Left Right Up 2,1 1000,900 Player 1 Down 3,2 2,1 2. Does either player in the following game have a dominant strategy, and if so, identify it? Does either player have a dominated strategy, and if so, identify it? What is the Nash Equilibrium in this game? Player 2 Left Middle Right Up 15,12 14,8 8,10 Player 1 Down 13,11 12,9 5,14 3. Coke and Pepsi are competing in the Brazilian soft-drink market. Each firm is deciding whether to follow an aggressive advertising strategy, in which the firm significantly increase its spending on media and billboard advertising over last year’s level, or a restrained strategy, in which the firm keeps its advertising spending equal to last year’s level. The profits associated with each strategy (Pepsi is on top and left is the aggressive strategy while Coke is on the left and up is the aggressive strategy.) are as follows: Pepsi Aggressive Restrained Aggressive
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Homework4 - Homework 4 Additional Questions: Game Theory 1....

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