Tutorial 3 Questions
Q1: Consider the Prisoners dilemma below
B
N
A
C
N
3, 3
10, -2
C
-2, 10
8, 8
Find the threshold value for discount factor in which the pair of trigger strategies
sustain cooperation.
Answer: If one continues to cooperate, she gets (8,
Degrees of M.A. (Soc.Sci.), M.A., B.Acc., B.Sc., LLB with
Honours Economics
Degrees of M.A. (Soc.Sci.), M.A., B.Sc., LLB with Honours
Business Economics
Microeconomic Analysis: Games and Industry
In-course Examination
(14:00-15:00, Monday 2 December)
Inst
1
Degrees of M.A. (Soc.Sci.), M.A., B.Acc., B.Sc., LLB with
Honours Economics
Degrees of M.A. (Soc.Sci.), M.A., B.Sc., LLB with Honours
Business Economics
Microeconomic Analysis: Games and Industry
In-course Examination
(14:00-15:00, Wednesday 12 February
Tutorial 2 Questions, Fall 2013
Q1: Consider the game below.
A
B
K
15
4
L
8
7
M
5
20
N
B
100
15
s
X
A
s
Y
s
B
(i) Write down the normal-form expression of this extensive-form game and nd all
pure-strategy Nash equilibria.
(ii) Find the subgame-perfect Nas
Tutorial 2 Questions, Fall 2013
Q1: Consider the game below.
A
B
K
15
4
L
8
7
M
5
20
N
B
100
15
s
X
A
s
Y
s
B
(i) Write down the normal-form expression of this extensive-form game and nd all
pure-strategy Nash equilibria.
(ii) Find the subgame-perfect Nas
Tutorial 1 Questions
Q1: Consider the game below.
B
F
H
I
X
0, 2
3, 1
0, 2
5, 3
Y
2, 1
0, 3
2, 4
1, 1
Z
1, 3
2, 0
1, 1
3, 2
V
2, 1
4, 1
1, 3
4, 1
W
A
G
3, 4
1, 3
3, 0
2, 2
(1) Find the set of strategies which survive after iterated elimination of dominate
1: (a) There is no dominance between any strategies for any player, so all X,Y,Z,U
for A and E,F,G,H for B survive.
Two pure-strategy NE, (Y,H) and (U,F).
(b)
A
0.9
0.1
0
0
0.5
0.5
0
Y
B
B
0
w
G
N
w
A
Y
F
w
B
N
Normal-form expression of this extensive-for
1: (1) Step 1: X is never best response for A, hence eliminated.
Step 2: G is never best response for B, hence eliminated.
Step 3: U is never best response for A, hence eliminated.
Step 4: E is never best response for B, hence eliminated.
Step 5: Y is nev
Problem set for exam prep Part 2
Usual disclaimer: This is just to help your example prep, and is not a prediction
of the actual exam.
Q1: Consider the game below.
B
F
H
I
X
0, 2
3, 1
0, 2
5, 3
Y
2, 1
0, 3
2, 4
1, 1
Z
1, 3
2, 0
1, 1
3, 2
V
2, 1
4, 1
1, 3