Question

SCENARIO 1: Refer to the game depicted in the table below in which Tsunami Corporation and Cyclone Company are considering advertising strategies. Payoffs are in millions of dollars and larger payoffs are preferred. Cyclone Magazines Radio ($6,$6) ($4, $8) ($8, $4) ($5.5, $5.5) Tsunami Newspapers Television Payoffs: (Tsunami, Cyclone) 1. a. Consider SCENARIO 1. Which player has a dominant strategy? Tsunami b. Cyclone c. Both Tsunami and Cyclone d. Neither Tsunami nor Cyclone e. Cannot be determined on the basis of the information provided. 2. a. Consider SCENARIO 1. The Nash equilibrium strategy profile for this game is: {Newspapers, Magazines}. b. {Television, Magazines). {Newspapers, Radio}. d. {Television, Radio). Cannot be determined on the basis of the information provided. c. e. 3. Consider SCENARIO 1. What is the strategy profile for this game if both players adopt a secure strategy? a. {Newspapers, Magazines} b. {Television, Magazines} {Newspapers, Radio} d. {Television, Radio} Cannot be determined on the basis of the information provided. c. e.

Answer 1

Prayer iespective what omer question (1) dominant Strategy it is a strategy Profice that gives maximum Payays To a Players are choosing it is easy to see That For Tsunami Televasion gives Tsunami, That is Television gives maximum layays to gets 8 which is more than 6 it Cyclone choose magazines similary 5.5 > 4. when cyclone chooses Racio. gives ay aff Similony For Cyclone Ractio gives maximum payoff irves lective of Tsunami's strategy. Ans: (6) Both Tsunami and Cyclone Strategy has dominant question (2) Since both Tusunami and cyclone has the dominant Strategy So, we have the dominant strategy wash equivbrium (Television, radio ) Ans: (da Television, vadio ?

qution (3) Secure stocategy of Prayer-1 for exam fie ensures That if Player decrease Player is Payapsi Then Player 2's Pajays decreases as 2 Tries To Well Checking for But That decreases The So ( News Paper, magazines) here they both are getting both are getting payoffs= ($6, 46) if Pi deviates foom New sfaler in order to increase it's Pagayt given cyclone is choosing magazines then IT sunami can get $8 pay aff Payays of magazi Cyclone To $4. secure Strategy For Cyclone (a) can not be secure Strategy Profile Now for { Television, magazines & Pay afj=(8,4) Cyclone has poojitable deviation to move from magazine To Ratio in order to get Pageyf= $5.5 But That reduces The Payays of magazine is not a

Tusunami foom So Not a secure $8 To $505 for Tsunami Stoutegy (b) Can not be secure strategy Profile it reduces Now for & Newspapers, Radio ? it is also Not a secure strategy Profile Because if Tsunami moved To Television Then Payass (6) can not be secure strategy Profile The Kyclone's his's Pay aff (d) { Television, Ravio ? ifr Asynemirnovecto Tsunami can not move To News later because it Similarly for cyclone does not have profitable deviation given Choosing Television Thero Jose it is Secure Strategy Ans: d & Television, Radio} reduces Tsunami is a Masu