Question

Problem 2: Consider the following normal form game: | A | B | C D L 2 ,3 -1,3 0,0 4,3 M -1,0 3,0 / 0,10 2,0 R 1,1 | 2,1 3,1 3,1 Part a: What are the pure strategies that are strictly dominated in the above game? Part 6: What are the rationalizable strategies for each player? What are all the rationalizable strategy profiles? Part c: Find all of the Nash equilibria of the game above.

Answer 1

Part a) strictly dominated those strategies which are dominated by other strategies on the basis of payoffs the pass on receives. if at strategy (A) is having higher payoffs than other strategy 8then it is said to be dominated. (strategy B is dominated.). C&A are dominated De weakly dominates De strictly " c (one pay off is equal) A Chigher payoffs) M is also dominated. Part b) Ratiortatiztttt Rationalizing strategies means elimination of donnineted strategies from the game A&C are rationalizable strategy for player 1. 4 rationaliz able-b strategy profile for playes 1 { A.C} strategy profile for player 2 -

L M R nash equilibrium (4,3) strategy D for player 1 - L - 2