Question

4. (a) (10%) A player has three information sets in the game tree. He has four choices in his first information set, four in his second and three in his third. How many strategies does he have in the strategic form? Circle one: (i) 11, (ii) 28 (iii) 48 (iv) 18. (b) (10%) Is it true that the following game is a Prisoners' Dilemma? Explain which features of a Prisoners' Dilemma hold and which do not. (Remember each player must have a strictly dominant strategy and the unique profile in which each player plays her strictly dominated strategy is worse for both players than the profile where each plays his strictly dominated strategy.) с d C3,3 2,4 D 4,1 1,1 (The players are labelled 1 and 2; the first payoff in each entry is the row player's.)

Answer 1

Q4) iii) 48

The number of Strategies = cross product of number of Strategies

= 4*4*3

= 48

a)

B) the game is not example of prisoners dilemma

bcoz neither player has any dominant Strategy

& The NE = (D,c) & (C,d)

	c	d
C	(3,3)	(2*,4•)
D	(4*,1•)	(1,1•)

Unique NE doesn't exist ,

Also at NE, no payoff is possible, where both could be made better off,

.

its mandatory to answer first Question mandatorarily as per Chegg policy