Question

9. Suppose than Lana and Carthy Airlines. They have have a cost and will b e value of the lugg . If they the Otherwise they are th e would someone report a Value gets an extra two d then Landets 252G - $915. What is the N a S heval o 10. Below are five true false questions. Each one is worth 2 point on your best. If you incorrectly answer ALL of these questions, you will carded 20 points (200% of possible points of this questions). a. The way to solve sequential games is to start at the final mover's choice and work backward. b. In sequential duopoly games (Stackelberg, there is always a second-mover advantage. c. In simultaneous games you can always find a Nash Equilibrium by finding players' dominant strategies or removing dominated strategies. d. Relative payouts between players mames for decision makers in game theory e. A game of Chess traditionally has fully aligned peeterences

Answer 1

10.

a. The statement is true. This process is called backward induction.

b. This statement is false. In a Stackelberg duopoly, the first mover gets to act as a monopolist and has the advantage.

c. The statement is true. By removing dominated strategies, we'd be left with dominant strategies for both players which would result in a pure/mixed strategy Nash Equilibrium.

d. The statement is false. The players only compare their own payouts while comparing different strategies.