FINAL EXAM 2018, questions and answers PDF

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A few questions might change but this should be very helpful. You should also watch the class movie to better understand the exam. ...

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Bakang Mogomela 105066514 Dr. Imran Abdool 9 April 2019 University of Windsor 401 Sunset Avenue Windsor, ON N9B3P4 Dear everyone, There is exactly $350,000 to your benefit from Grogan. You have all structured it to be a competitive game of who gets the money first. Grogan, an ex-prisoner, has informed you all that the money is buried in Santa Rosita State Park near the Mexican border under “a big W.” The best way to reap from this is to work together as a group and communicate effectively. It has come to my understanding that the Chief of Detectives of the Santa Rosita Police Department has been investigating this case for a while now. Having the individual race and having one winner sounds like an ideal plan, however, this is a game that needs further analysis and strategies. It will be severely challenging for one group to find that money on their own without breaking down the process. With that being said, I have suggestions of how you can all reap of your benefit without getting the police involved and no one losing out on the victory. Based on my knowledge, a dominant strategy leads to a non-cooperative game as an outcome. A dominant strategy is whenever a strategy earns more profit than the second strategy, regardless of what strategy the other player chooses. With that said, if you all come together and implement a cooperative equilibrium, or a cooperative solution, where everyone breaks the game down into sequential form and analyses each move there will be a positive outcome.

In this situation, it is wise for each one of you to intellectually brainstorm ideas and plan the journey out carefully. While planning it effectively, keep in mind that if you do not come to a common ground, there will be more losses individually than there will be in a group setting. Each player has to respective of every suggestions and take each other’s ideas into consideration. Reasoning can justify logical strategies; hence each player has to understand that every decisionmaker is a rational thinker and is aware that others are rational as well. If you all stick to your original individual plan despite knowing the other players strategies, then Nash Equilibrium is at the peak, and this may not have the best outcome. One of the best ways to plan this out is to see what each individual can bring to the table to help save money and time on the journey to Santa Rosita State Park. In the context of your circumstances, the money is meant to be collected by everyone at the “big W” and that will avoid the sequential game where you all have the ‘wild goose chase’ and end up walking away with empty pockets. Sequential games are moves based on the opponent’s strategies. If player A decides to follow the dominant strategy that would work in their favor, player B would make their best move based on player A’s strategy (2015). The sequential game must be avoided at all costs because it can lead to many conflicts along the way and result in the loss of a fair share of the money. Incorporating the cooperative solution will also help with eliminating the irrelevant strategies, this is formally known as Iterative Elimination of Irrelevant Strategies (IEIS). IEIS states that once the irrelevant strategies are eliminated, you will be left with the rationalized ones. For example, if each one of you goes with their dominant strategies that are not rational, but rather irrelevant, you will move with the wind and not reach the destination. Furthermore, using the dominant strategy can cause social dilemma, this is a circumstance where an individual wish is to benefit from selfishness unless the other team mates

pick the narrow-minded option, in which the entire group loses. The dominant strategy equilibrium in the game is different from the cooperative solution. The main root of the problem is when the majority of the team players choose instantaneous profit and enjoyment rather than working towards the long-terms benefits of the group. If you are all unaware of the other opponents’ strategy, it could result in a situation where the police department can easily track you down and find the money, this could also mean that you are a suspect for the investigation. Furthermore, the second strategy would include changing the plot of the game by changing the extensive form into the normal, cooperative structure. The $350,000 is the focal equilibrium in this game because the money is what attracted the players to join the search. The information that the ex-convict, Grogan gave you, is the outside information that was available for all players to search for the big prize. In this new plot, I suggest that you all do not use your cars at once to avoid multiple damages. Selling the furniture from the truck and squeezing everyone in the truck can be helpful. Saving the money from the sales could help for any necessities during the trip. Also, using only one car will avoid involving more people such as taxi drivers etc. If all players use their cars that is an irrelevant move, and that will draw attention to the police as they are on the search as well. Since all players committing to the cooperative game and giving up the top spot, each player can leave with an equal sum of $70,000. To add on, using one car can also eliminate natural uncertainty, this is when the outcome of the game is uncertain because of some natural causes rather than the actions of the players. In this situation when you are plotting out the journey, you should rule out the irrelevant strategies that could cause natural uncertainties such as not having resources around them, the heavy winds at the dessert, and finding gas stations since they are in the middle of nowhere. Throughout the journey, I suggest that all players keep in contact with each and help the driver find the directions to the dream

destination. If anyone decides to go somewhere, another player must accompany to avoid people getting lost along the way. You should all avoid giving out information about your destination, and why you are going there as none of you know what the chief detective looks like. Once you arrive at Santa Rosita, take your time to look and understand the venue to avoid getting lost. While on the search, try to do everything amongst yourself in a calm and collected manner because Santa Rosita is a massive place. When you locate the “big W”, dig the money out quietly and quickly leave the scene. In case of a situation where a civilian approaches the scene about the $350,000, do not trust them when they announce that they will return the money to the Police Department. Since the case has been open for a while, Mr. Culpeper has been on the search for the money to steal it. After leaving the scene, you can all fairly split the money amongst yourselves and go on with your individual plans. Remember that every player will get a sum of $70,000 each. To conclude, the best strategy is to equally share the allowance amongst the five of you. Each player will have an equal payout and this will produce cooperative solution. If you all choose to use other strategies, they will not convey an equal result for everyone. This will cause disparity amongst you all. I wish you all the best of luck and a safe journey.

Kind regards, Bakang Mogomela

References 5 Types of Games in Game Theory (With Diagram). (2015, August 11). Retrieved from http://www.economicsdiscussion.net/game-theory/5-types-of-games-in-game-theorywith-diagram/3827...