Question

You have 15 minutes to solve the exam. Write down all your answers in the bluebooks, and mark your answers properly. For callation questions, you need to show all major steps. Good Luck 1. Basie Game Theory 21 points) Consider the following game Player 2 2026 1833 22.18 A. (6 points) Does player I have a dominant strategy. If yes, describe it. B p oints) Can this game be solved by the elimination of dominated strategy? If yes, describe your method and result in detail C. (6 points) Now suppose there is some change to the payoff matrix, find the Nash equilibrium for the new game below Player 2 D Player 1 28 27 2020 27,20 2. Price Discrimination (24 points) First indicate the opes of price discrimination for the cases below. Then explain the differences between the different types of price discrimination that you find in these examples Case A: Pop singer XXX is announcing a concert tour starting next summer, and there is a 20% price discount for those loyal fans who have always been actively participating in XXX's official fan club in the last two years. For those concert goers who order the ticket before this thanksgiving, they can enjoy a 10% early bird discount. Moreover anyone who buy the ticket can enjoy a 10% discount when they also shop at XXX's online merchandise store. Case B At ABC Yoga studio the price of a single yoga class is $18, a five-class yoga pass (expires in two months) costs $80, and a ten-class pass (expires in four months) costs $150. It also offers one month unlimited yoga classes to the first time new customers at $59.99, which is normally $129.99. Moreover it offers the weekday morning class special discount: one month of mited weekday classes before 2pm at $109.99

Answer 1

Player ro с Player, A 20,26 21,24 B 18, 23 22 18 No, Player 1 dont have dominant strategy. Yes, because player a coneliminate strategy D. & CA,C) will be the ele Nash aqen o Players , 28, 27 27, 20 Player A 25, 26 B 20,21 Two Nash am (B,C) 4 (A,D) - are two puresbategy Nash wn