3. Player 1 and Player 2 are going to play the following stage game twice: Top Bottom Left 4,3 0,0 Player 2 Middle 0,0 2,1 Right 1,4 0,0 Player 1 There is no discounting in this problem and so a player's payoff in this repeated game is the sum of her payoffs in the two plays of the stage game. (a) Find the Nash equilibria of the stage game. Is (Top, Left) a Nash of the stage game? (b) Find a subgame perfect Nash equilibrium of the repeated game where the first time they play the stage game Player 1 chooses Top and Player 2 chooses Left.
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- 1. Consider the game where initially She chooses between "Stay Home" and "Go Out". If She chooses "Stay Home" then She gets 2 and He gets 0. If She chooses "Go Out" then they each simultaneously choose "Movie" or "Concert" where the payoffs are 0,1 or 3 as in the Battle of the Sexes Game. What are the subgame perfect Nash Equilibria of this game ?Question 4. Zeynep and Mehmet will eventually play the following game. Mehmet L R U 3,1 0,0 Zeynep D 0,3 1,3 In a preliminary stage, Zeynep has already asked Mehmet to allow her to move first and proposed to pay him 1 unit of her own payoff in exchange. So Mehmet has to options: • If he accepts Zeynep's offer: they will play the sequential move version of the above game in which Zeynep moves first. Mehmet will receive 1 unit of utility more, and Zeynep will receive 1 unit of utility less (in any outcome of the game) compared to the payoffs given in the bimatrix. 2 • If he rejects Zeynep's offer: they will play the simultaneous move game. a. Represent this strategic interaction in a game tree. b. How many information sets does each player have? c. Characterize the set of pure strategies for both players. d. Present this game as a normal-form game, and characterize the set of pure strategy Nash equi- libria.Consider the following game: Player 2 In Out Player 1 In -2,-2 2, 0 Out 0, 2 0, 0 (a) What is the Nash equilibrium of this game, or what are the Nash equilibriaof this game? (b) Does either firm have a dominate strategy (a strategy that is always abest response)? Which? (c) Suppose Player 1 could move before Player 2 and Player 2 could observe Player 1’s move. What do you think would happen?
- Consider the extensive form game portrayed below. The top number at aterminal node is player 1’s payoff, the middle number is player 2’s payoff,and the bottom number is player 3’s payoff.a. Derive the strategy set for each player. (Note: If you do not want to listall of the strategies, you can provide a general description of a player’sstrategy, give an example, and state how many strategies are in thestrategy set.)b. Derive all subgame perfect Nash equilibria. c. Derive a Nash equilibrium that is not a SPNE, and explain why it isnot a SPNE.Keith and Blake play a simultaneous one-shot game given by the following table: Blake Left Right Тop 5.00. -5.00 0.00, -6.00 Kelth Bottom 6.00,0.co -2.00, 8.00 As there is no unique pure strategy Nash equilibrium, assume that each player plays each of his chcices half of the time. What is the average payoff for Keith? (Round to two decimals if necessary.) What is the aver age payoff for Blake? |(Round to two decimals if necessary)4. Suppose that Anne and Bob must simultaneously name a number in the set {1,2, ..., 10}. If they name the same number, the each get a payoff of 1; if they name different num- bers, they each get a payoff of 0. (a) Find all (pure and mixed strategy) Nash equilibria of this game. (b) How many are there? Explain why. (Hint: there are a lot of them!)
- GAME 5 Player B B2 B1 Player A A1 7, 3 5, 10 A2 3, 8 9, 6 In Game 5 above, O there are no Nash equilibria in pure strategies. Player A choosing A1 and Player B choosing B2 is a Nash equilibrium. O Player A choosing A1 and Player B choosing B1 is a Nash equilibrium. O Player A choosing A2 and Player B choosing B1 is a Nash equilibrium.Consider the following simultaneous game: Player 1 U D Player 2 L 20,-10 -10, 20 R -10, 20 20,-10 Please indicate whether each of the following statements is true or false. Player 1 has a dominant strategy. This game has a Nash equilibrium. This game has a Nash equilibrium in pure strategies. Player 1's best response is D if player 2 plays R.5 Suppose two players play one of the two normal-form games shown in Figure 1. L U 0,-1 D 2,4 R 2,0 6,0 L U | 4,-1 D 2,-2 R 2,0Now suppose that Player 2 knows which game is being played, but Player 1 does not. Find the pure strategy Bayesian Nash equilibrium of this game.
- 2. Brad and Angelina have agreed to meet up for their first date. Neither of them can remember the exact location where they arranged to meet up and have forgotten their phones at home. Their payoff matrix can be described as follows: Brad The Hive Le Monde a) What is the Nash equilibrium in this game? Angelina The Hive 5; 5 0; 0 Le Monde 0; 0 5; 5(b) ROWENA up Answer 1: up Answer 2: In this simultaneous move game, the iterated dominance equilibrium is (Rowena's . Colin's left left Answer 3: ). This game has two Nash equilibria one of which is the iterated dominance equilibrium. The other Nash equilibrium, which is not the IDE, is (Rowena's down Colin's right down Up Down Answer 4: Left right 0,0 0,0 COLIN Right 0,0 1,12. Consider the following game. Two criminals are thinking about pulling off a bank robbery. The take from the bank would be $20,000 each, but the job requires two people (one to rob the bank and one to drive the getaway car. Each criminal could instead rob a liquor store. The take from robing a liquor store is only $1000 but can be done with one person acting alone. Write the payoff matrix of this game Player A Bank job Liqour store Player B Bank job Liquor store a. What are the Nash equilibria in this game? b. Explain why there can be multiple equilibria in this game. c. How the game will be played if mixed strategies are allowed? Discuss.