A coordination problem usually occurs in situations where there is: a. a unique, but desirable Nash equilibrium b. no Nash equilibrium c. more than one Nash equilibrium d. a unique, secure strategy for both players
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A coordination problem usually occurs in situations where there is:
a. a unique, but desirable Nash equilibrium
b. no Nash equilibrium
c. more than one Nash equilibrium
d. a unique, secure strategy for both players
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- Aedri Quick Lesson in Game Theory A Nash Equilibrium is an outcome in which neither player is better off by changing their strategy. 2.7 Is a Dominant Strategy equilibrium also a Nash equilibrium? a) Yes b) No esc The Ice Cream Guys $3.99 $4.99 + Chucky's Chunky CCT: $20,000 $3.99 ICG: $20,000 CCT: $60,000 ICG: $10,000 tab Treats CCT: $10,000 $4.99 ICG: $60,000 CCT: $40,000 ICG: $40,000 The table above is the payoff matrix for the annual profit of the only two ice-cream-truck firms operating in Beach City. They are deciding the price of an ice cream cone. %3D caps lo 2.8 What is Chucky's dominant strategy? a) $3.99 b) $4.99 c) Not enough information hift 2.9 What is the dominant strategy equilibrium in this situation? a) Both charge $3.99 b) Both charge $4.99 c) CCT charges $3.99 and ICG charges $4.99 d) CCT charges $4.99 and ICG charges $3.99 2.10 Suppose these two firms engaged in collusion (which, of course, totally doesn't happen because it is against the law). Which outcome would…What is the Nash Equilibrium in a game?A. A situation where all players cooperate for maximum gainB. A situation where no player can improve their outcome by changing their strategy unilaterallyC. A situation where players always choose the same strategyD. A situation where players randomly select strategiesSam and Sarah are thinking about getting married. However if either of them cheats on the other, they would get a payoff of 10, while the other person gets zero. If neither cheat, they stay with each other and get a payoff of 7 each and if both cheat, the relationship falls apart and each get a payoff of 1. What is the Nash equilibrium of this game? a. Cheat, Cheat b. Not cheat, Not cheat Sam cheats, Sarah doesn't Sarah cheats, Sam doesn't
- Please answer all parts. Two construction companies EdilA and EdilB take part in a race contract to build a school. Both can bid 1000, 2000 or 3000. The winner (the lowest offer) builds the school and pays 900 of costs. 1. When both bid the same amount, EdilA wins the contract. Find the Nash equilibrium. 2. Assume instead that when both bid the same, neither gets the contract, and furthermore suffer a penalty of 10. Find the Nash equilibrium. 3. Assume instead that when both bid the same, each builds half the school (but sustains 600 of costs, thus more than half). Find the Nash equilibrium. 4. Under the hypothesis of point 2 assume that EdilB can observe the offer made by EdilA before it makes its offer, and that EdilA anticipates that. Find the Nash equilibrium by backward induction of this sequential game.1. With nash equilibrium, do you always choose the optimal strategy? 2. Can a game have more than one nash equilibrium?Tucker and Eddie are playing the following game. Tucker can choose A or B and Eddie can choose C or D. The first payoff is for Tucker, the second for Eddie. Eddie Tucker C D A 3, 2 4, 3 B 4, 5 3, 4 Identify the Nash equilibrium(s) in this game. What rational game theoretic advice would you offer Tucker and Eddie on how to play this game? If Tucker and Eddie follow your advice, what payoff should each expect? Show your work.
- What is the Nash Equilibrium in a game? A. A situation where all players cooperate for maximum gain B. A situation where no player can improve their outcome by changing their strategy unilaterally C. A situation where players always choose the same strategy D. A situation where players randomly select strategiesUse the following extensive-form game to answer the following questions. a. List the feasible strategies for player 1 and player 2. b. Identify the Nash equilibria to this game. c. Find the subgame perfect equilibrium.In a game, a Nash equilibrium is reached only if the players ________. a. understand the game and the payoffs associated with each strategy b. use backward induction to develop their strategies c. follow a mixed strategy d. have no best response for the choices made by other players
- Answer all the questions, show all the working. Consider the following game in normal form. Not cooperate Cooperate Not cooperate 20,20 50,0 Cooperate 0,50 40,40 What is Nash equilibrium? Is it efficient? Why? What needs to be complied with so that the players would like to cooperate? What happens when one of the players does not cooperate? Why? Define trigger strategy. Calculate the discount factor (δ) that would make both players decide to cooperate.1. A game may have more than one Nash equilibrium. T/F ? 2. A game has always at least one pure strategy Nash equilibrium. T/F? 3. A situation where everyone is playing a dominant strategy must be a Nash equilibrium. T/F?A B 2 2 C 3,2 D 2,1 E 1,1 F In this game, the strategy profile (B.CE) is 4 2.2 not a Nash equilibrium a subgame imperfect Nash equilibrium a subgame perfect Nash equilibrium
