Solutions to Chapter 7 Exercises
SOLVED EXERCISES
S1.
False. A players equilibrium mixture is devised in order to keep her opponent indifferent
among all of her (the opponents) possible mixed strategies; thus, a players equilibrium mixture
yields the oppo
HW#1 Game Theory Solution
Chapter 2: U2
U2.
(a)
(i) Simultaneous, because each day the two sales representatives privately decide how hard to work that day. We
could also model the game as each sales representative deciding how hard he or she will work to
Solutions to Chapter 9 Exercises
SOLVED EXERCISES
S1.
(a)
Your neighbor has a sure income of $100,000. In addition, under the insurance
contract, he will receive x when you have a good year and pay you $60,000 when you have a bad
year. The lowest value of
QUIZ 3-SOLUTION
QUESTION 1 (50 points)
There are only trolls, elves and hobbits. Trolls only thrive (= reproduce) when interacting with
elves and elves only thrive when interacting with trolls. Hobbits only thrive when interacting
with other hobbits. Each
Solutions to Chapter 6 Exercises
SOLVED EXERCISES
S1.
Second-mover advantage. In a sequential game of tennis, the second mover will be able to
respond best to the first movers chosen action. Put another way, the second mover will be able to exploit
the in
Syllabus ECO286 Game Theory Spring 2014
Instructor: Dr. Volker Grzimek
Office: Draper 121B
Contact Info: grzimekv@berea.edu and x 3057 and (919)259-1258 (no calling my cell between midnight and 10 am)
Office hours: Monday through Thursday from 1 to 2 and
Solutions to Chapter 10 Exercises
SOLVED EXERCISES
S1.
The statement is true because promises, when successfully used as strategic moves, require that
you follow through on the promised action; you will not promise an arbitrarily large reward. You may
thr
Game Theory Study Guide Quiz 1
Quiz will last 60 minutes so make sure you really have the concepts down and the speed up! We will
not drag the quiz to a full 110 minutes just because you work too slowly!
Allowed help: Calculator, Pen, Brain
Additional off
Solutions to Chapter 8 Exercises
SOLVED EXERCISES
S1.
False. A players equilibrium mixture is devised in order to keep her opponent indifferent among
all of her (the opponents) possible mixed strategies; thus, a players equilibrium mixture yields the
oppo
HW#3 - Game Theory ECO 286
SOLUTION KEY
1) Your utility of wealth is U = W. You are in one of two states: with 50% chance your
wealth is 400 and with 50% chance your wealth is 900.
a) What is your expected wealth and what is your expected utility
E(W) = .
HW#2 Game Theory Answer Key
Chapter 6: U7 and U11
Skipped U7
U11. (a)
The profit functions when both firms decide to invest are:
B = (30 QB QC)QB (20 + QB2/6) and C = (30 QB QC)QC (20 + QC2/6)
Solving the first-order conditions, the best-response function
Game Theory Study Guide Final Exam
The final exam will last 110 minutes Since some of you will have an exam right afterwards, there is
no extra time!
Monday
Tuesday
Wednesday
8:00 AM
ECO286 Final
8:30 AM
ECO286 Final
9:00 AM
9:30 AM
10:00
AM
10:30
AM
11:0
Game Theory Study Guide Quiz 2
Quiz will be designed for 60 minutes but as announced in class you have up to the full 110 minutes if
needed no class after the quiz!
Allowed help: Calculator, Pen, Brain
Additional office hour: 4:15ish-7 Sunday
Review Sessi
Game Theory Study Guide Quiz 3
Quiz will be designed for 60 minutes but you have up to the full 110 minutes if needed no class after
the quiz!
Allowed help: Calculator, Pen, Brain
Review Session: 6 PM Tuesday
Chapter 11 Prisoners Dilemma: Parts 1, 2 (but