1) In game theory, a game is called a Prisoner's dilemma game when A. there are...
1) In game theory, a game is called a Prisoner's dilemma game when
A. there are 0 Nash equilibriums.
B. there are 2 Nash equilibriums
C. both players would be better off compared to the Nash equilibrium if they could cooperate
D.the game is sequential
2) After a pandemic, the markup for masks ...
has increased
has decreased
has stayed the same
Homework Answers
1) A Nash equilibrium occurs when no player in the game has an incentive to change their decision, taking into account the opponents decision. In game theory, a game is called a Prisoner's dilemma game when both players would be better off compared to the Nash equilibrium if they could cooperate. The answer is option (C).
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1) In game theory, a game is called a Prisoner's dilemma game
when
A. there are...
How many repetitions does it take for players in a repeated Prisoner's dilemma to cooperate? Question is relevant to game theory.
How many repetitions does it take for players in a repeated Prisoner's dilemma to cooperate? Question is relevant to game theory.
Exercise 6 (Difficult),. Consider the following modification of the prisoner's dilemma game. A-1,...
Exercise 6 (Difficult),. Consider the following modification of the prisoner's dilemma game. A-1,-1-9,0-6,-2 B | 0,-9 |-6-61-5-10 C1-2,-6 |-10,-51-4,-4 You should recognise the payoff's from (A, L), (A, R). (B, L). (B, R) as those in the prisoner's dilemma game studied in class. We added two strategies, one for each player. Also note that strategies A and L are still (when compared to the original prisoner's dilemma game) strictly dominated . What is the set of Nash equilibria of this...
If a Prisoner's Dilemma game is repeated daily, such that two rival stores choose a price...
If a Prisoner's Dilemma game is repeated daily, such that two rival stores choose a price simultaneously each morning for an extended number of days, which outcome can happen? The Nash equilibrium will continue to be played only until one firm engages a trigger strategy against the other. There will more likely be cooperation to achieve an outcome different from the Nash equilibrium that is better for both firms. The Nash equilibrium will continue to be played throughout the game....
The dilemma in a prisoner's dilemma is that: Multiple Choice only one player has a dominant...
The dilemma in a prisoner's dilemma is that: Multiple Choice only one player has a dominant strategy, but the other player is uncertain about what to do. the players would be better off if they both played a dominated strategy. the players may be trapped in a game they don’t know how to play. the outcome is random, so players are uncertain about which strategy to play.
A game involving two players with two possible strategies is a prisoner's dilemma if each player...
A game involving two players with two possible strategies is a prisoner's dilemma if each player has a dominant strategy and: Select one: a. neither player plays their dominant strategy. b. each player's payoff is higher when both play their dominated strategy than when both play their dominant strategy. c. each player's payoff is lower when both play their dominant strategy than when both play their dominated strategy. d. there is a Nash equilibrium that yields the highest payoff for...
Airlines in the Prisoner's Dilemma American Airlines and Delta Airlines once found themselves in a classic...
Airlines in the Prisoner's Dilemma American Airlines and Delta Airlines once found themselves in a classic prisoner's dilemma It all started when Delta wanted to expand its share of the lucrative Dallas-to-Chicago route, where American was the dominant carrier Delta offered a substantial fare cut on that route to attract new travelers American threatened a price war by offering its own fare cut on the Delta-dominated Dallas-to-Atlanta route Both airlines had a dominant strategy to cut their are on the...
Question 3 Consider the game in figure 3. Player 2 LR 3,3 1,4 Player 1 4,1...
Question 3 Consider the game in figure 3. Player 2 LR 3,3 1,4 Player 1 4,1 2,2 Figure 3: A Prisoner's Dilemma game. Assume that the payoffs in the figure are $ values. (i) Assume that both players have risk neutral utility functions. Find all of the Nash equilibria of this game. (ii) Next, assume that the row player has other regarding preferences with a = 0 and B = 3 (while the column player has the same preferences as...
MicroEcon True/False Problem 1: True/False/Uncertain (20 points) Please fully explain your answer. Points are awarded based...
MicroEcon True/False
Problem 1: True/False/Uncertain (20 points) Please fully explain your answer. Points are awarded based on explanations. 1. (4 points) In a two-player game, a Nash equilibrium is the outcome that maximizes the sum of the players' payoffs. 2. (4 points) In a Nash equilibrium in a two-player game, both players must have selected a dominant strategy. 3. (4 points) Repeatedly playing the Prisoner's Dilemma may or may not result in a cooperative solution. 4. (4 points) In the...
3. (Level A) Suppose the following Prisoner's Dilemma is repeated infinitely: 112 C D C 2,...
3. (Level A) Suppose the following Prisoner's Dilemma is repeated infinitely: 112 C D C 2, 2 0, 3 D 3,0 1, 1 Let uj be the payoff to player i in period t. Player i (i-1,2) maximizes her average discounted sum of payoffs, given by ( where o is the common discount factor of both players Suppose the players try to sustain (C, C) in each period by the Grim Trigger strategy. That is, each player plays the following...
3. (Level A) Suppose the following Prisoner's Dilemma is repeated infinitely: C 2, 2 0, 3...
3. (Level A) Suppose the following Prisoner's Dilemma is repeated infinitely: C 2, 2 0, 3 D 3,0 1, Let uj be the payoff to player i in period t. Player i (i 1,2) maximizes her average discounted sum of payoffs, given by ( o0 (1-6 X6u where o is the common discount factor of both players Suppose the players try to sustain (C, C) in each period by the Grim Trigger strategy. That is, each player plays the following...
Exercise 6 (Difficult),. Consider the following modification of the prisoner's dilemma game. A-1,-1-9,0-6,-2 B | 0,-9 |-6-61-5-10 C1-2,-6 |-10,-51-4,-4 You should recognise the payoff's from (A, L), (A, R). (B, L). (B, R) as those in the prisoner's dilemma game studied in class. We added two strategies, one for each player. Also note that strategies A and L are still (when compared to the original prisoner's dilemma game) strictly dominated . What is the set of Nash equilibria of this...
Airlines in the Prisoner's Dilemma American Airlines and Delta Airlines once found themselves in a classic prisoner's dilemma It all started when Delta wanted to expand its share of the lucrative Dallas-to-Chicago route, where American was the dominant carrier Delta offered a substantial fare cut on that route to attract new travelers American threatened a price war by offering its own fare cut on the Delta-dominated Dallas-to-Atlanta route Both airlines had a dominant strategy to cut their are on the...
Question 3 Consider the game in figure 3. Player 2 LR 3,3 1,4 Player 1 4,1 2,2 Figure 3: A Prisoner's Dilemma game. Assume that the payoffs in the figure are $ values. (i) Assume that both players have risk neutral utility functions. Find all of the Nash equilibria of this game. (ii) Next, assume that the row player has other regarding preferences with a = 0 and B = 3 (while the column player has the same preferences as...
MicroEcon True/False
Problem 1: True/False/Uncertain (20 points) Please fully explain your answer. Points are awarded based on explanations. 1. (4 points) In a two-player game, a Nash equilibrium is the outcome that maximizes the sum of the players' payoffs. 2. (4 points) In a Nash equilibrium in a two-player game, both players must have selected a dominant strategy. 3. (4 points) Repeatedly playing the Prisoner's Dilemma may or may not result in a cooperative solution. 4. (4 points) In the...
3. (Level A) Suppose the following Prisoner's Dilemma is repeated infinitely: 112 C D C 2, 2 0, 3 D 3,0 1, 1 Let uj be the payoff to player i in period t. Player i (i-1,2) maximizes her average discounted sum of payoffs, given by ( where o is the common discount factor of both players Suppose the players try to sustain (C, C) in each period by the Grim Trigger strategy. That is, each player plays the following...
3. (Level A) Suppose the following Prisoner's Dilemma is repeated infinitely: C 2, 2 0, 3 D 3,0 1, Let uj be the payoff to player i in period t. Player i (i 1,2) maximizes her average discounted sum of payoffs, given by ( o0 (1-6 X6u where o is the common discount factor of both players Suppose the players try to sustain (C, C) in each period by the Grim Trigger strategy. That is, each player plays the following...
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