Question

E F 1. (5 points) Can the game theory approach described in chapter 10 be used to analyze the model of Perfect Competition? Please explain. 2. (5 points) Use the following payoff matrix for a simultaneous move one shot game to answer the following questions Player 2 Strategy с D Player 1 A 6, 14 7, 11 18, 20 10, 19 B 12, 5 15, 1 7, 25 16, 17 (a) Does player 1 have a dominant strategy? If yes, what is it? If no, why not? (b) Does player 2 have a dominant strategy? If yes, what is it? If no, why not? Does this game have a Nash equilibrium? Please explain. 3. (5 points) Use the following matrix to answer the following questions. Player 2 Strategy с D Player 1 -10-10 200, -100 B -100, 220 140, A 180 Assume that this is a simultaneous move one shot game. Determine the dominant strategy for player A and Player B. If such a strategy does not exist, explain why not. (b) Determine the secure strategy for player A and player B. If such a strategy does not exist, explain why not. (c) Determine if a Nash equilibrium exists in this game and explain why it exists (or why not).

game theory strategy and dominant strategies

Answer 1

as 1%210. 7 L 18 and - ig "I and as 20716, he em 5. and 77 ad Player 1 has no dominant strategy, 1276 ben, 1577 ben, 1577 but by player 2 has strictly dominant strategy which is 257 17, I and To Player 2 cuill always choose E as E is strictly dominant strategy, by knowing player 1 will choose A @ 1877. of A,E} es this m So, hash equ

له لو -107-100 and 200°>140, A is strictly dominant for player 2, e is strictly dominant as - 102-100 and For player to Strategy stadegy For playu 1, secure secure strategy is for player 2, decure strahegy both are e) Nash equilibrium is (A,C). As playen I will choose A an player 2 will always choose e, 220 180 I and @ as is always and