HW 5/6 Selected Ans:
Q1) Strategies: Pepsi : Accommodate, Tough Coke: [EAA, EAT, ETA, ETT, NAA, NAT, NTA, NTT] Normal Form : Construct an eight by two matrix and fill in the payoffs as follows. 1. 2. 3. 4. 5. (EAA, A) , (EAT, A) : (1,2) (ETA, A), (ETT, A)
Econ 116A, Fall 2010 Homework # 1 1. IEDS: Find the outcomes for the following games. Show all the stages and clearly mention the dominated and the dominating strategies. GAME I :
L
T -1, 1 M 4, -2 B 3, 0
C
0, -33 2,1 4, 3
R
1, -10 1.5, 3 3, 1
GAME II :
L
HW Solutions HW 1 1. Game I a. M strictly dominates T eliminate T. b. R and C strictly dominate L eliminate L. c. B strictly dominates M eliminate M. d. C strictly dominates R eliminate R. Thus the IEDS solution for this game is the strategy profile (B,C)
Econ 116A, Fall 2010 Homework # 2 1. Find the Nash equilibria of the following game. Note that NE will depend upon value of a.
2 C 1 C D
2 + 2a, 2 3, 0
D
3a, 3 1+ a, 1
2. Textbook, Exercise 42.1 3. Practice Question (Do not submit): Exercise 37.1. Verify
Econ 116A, Fall 2010 Homework # 3
1. Exercise 31.2 2. Exercise 27.2 3. Practice Questions (Do not submit): Exercises 5.3, 6.1, 60.2. Verify your answers on the text website.
Game Theory, Econ 116A
Midterm Exam, Fall 2010
Instructions: You must keep your notes and books closed. Switch off your cell phones, laptops and any other electronic device that you may be carrying. The exam is of 50 points and the maximum time allowed is
Econ 116A, Fall 2010 Homework # 8 1. Exercise 173.4 2. (a) Find all the subgames of the game in Exercise 156.2c. (b) Find the subgame perfect equilibria of the game. 3. Practice question: Exercise 210.2
Econ 116A, Fall 2010 Homework # 9 1. Consider the following extensive form game. Player 1 chooses between actions L and R. If L, then player 2 observes that and chooses between X and Y. If R, then the two play a simultaneous game 1 chooses between l and r
Econ 116A, Fall 2010 Homework # 7 1. (Centipede Game) Consider a two player game in which the players move alternately. On each move a player can either stop the game (S) or continue (C). A three stage game is played as below. If player 1 chooses S, the g
Econ 116A, Fall 2010 Homework # 5/6
1. Consider the three stage entry game number two (between coke and pepsi) discussed in class. a. Draw the game tree and write down the strategies of the two players. b. Solve the game by backward induction method. c. W