Game Theory worksheet - filled in PDF

Preview

Summary

Game theory microeconomics...

Description

ECON 3100 in class worksheet – Game Theory Find the Nash Equilibrium of the following game

Honda

Build Large Build Small Do not Build

Toyota Build Large Build Small 0,0 12,8 8,12 16,16 9,18 15,20

Do not Build 18,9 20,15 18,18

Two animals are fighting over some prey. Each can be passive or aggressive. Each prefers to be aggressive if its opponent is passive and passive if its opponent is aggressive. If it is passive, it prefers the outcome when its opponent is passive to the outcome when its opponent is aggressive. Model this as a game and find the Nash equilibrium/a

Find the Mixed Strategy Nash Equilibrium of the following game.

Player 1

Heads Tails

Player 2 Heads 1,-1 -1,1

Tails -1,1 1,-1

Find all Nash Equilibria (pure and/or mixed strategies)

Player 1

Bach Stravinsky

Player 2 Bach 2,1 0,0

Stravinsky 0,0 1,2

Find the subgame perfect Nash Equilibria of the following game

An incumbent firm faces the possibility of an entrant firm entering the industry. The challenger may enter or not. If it enters, the incumbent may acquiesce or fight. The best outcome for the challenger is that it enters and the incumbent acquiesces, followed by the outcome where it stays out, followed by the outcome where it enters and the and the incumbent fights. The best outcome for the incumbent is where the challenger stays out, followed by the outcome where the challenger enters and it acquiesces, followed by the outcome where the challenger enters and it fights. Model this as an extensive form game and find the SPNE....