a.) Lala and Po both choose to play an action, and the payoff from that choice i
ID: 1113625 • Letter: A
Question
a.) Lala and Po both choose to play an action, and the payoff from that choice is dependent on what the other player chooses. Both players choose their actions simultaneously and reveal their choice to each other at the same time. Which of the following statements about dominant strategies is true?
-Lala has a dominant strategy to "Jump" and Po has a dominant strategy to "Kick"
-Lala has a dominant strategy to "Jump" and Po has a dominant strategy to "Duck"
-Lala has a dominant strategy to "Punch" and Po has a dominant strategy to "Kick"
-Lala has a dominant strategy to "Punch" and Po has a dominant strategy to "Duck"
-Lala has a dominant strategy to "Jump" but Po does not have a dominant strategy
-Lala has a dominant strategy to "Punch" but Po does not have a dominant strategy
-Po has a dominant strategy to "Kick" but Lala does not have a dominant strategy
-Po has a dominant strategy to "Duck" but Lala does not have a dominant strategy
B.)
Which of the following statements is true?
-There is more than one Nash equilibrium in this game
-The only Nash equilibrium is: Lala chooses “Jump,” Po chooses “Kick.”
-The only Nash equilibrium is: Lala chooses “Punch,” Po chooses “Duck.”
-The only Nash equilibrium is: Lala chooses “Punch,” Po chooses “Kick.”
-The only Nash equilibrium is: Lala chooses “Jump,” Po chooses “Duck.”
Lala Jump Punch Lala gets payoff Lala gets payoff Kick -2 -1 Po Po gets payoff Po gets payoff -0.5 Lala gets payoff Lala gets payoff 0.5 DuCKPo gets payoff Po gets payoffExplanation / Answer
(a)
If Lala chooses to jump then pay-off for Po is higher if he chooses to kick.
If Lala chooses to punch then pay-off for Po is higher if he chooses to duck.
So, Po does not have any dominant strategy. His strategy changes with the strategy of Lala.
If Po chooses to kick then Lala will choose to punch as pay-off is higher in that case.
If Po chooses to duck then Lala will choose to punch as pay-off is higher in that case.
Lala will choose to punch whatever be the strategy choosen by Po.
Thus, Lala has dominant strategy - To Punch
So, Lala has a dominant strategy to "punch" but Po does not have a dominant strategy.
The correct answer is the option (6).
(b)
Lala will use his dominant strategy - To Punch
If Lala chooses to punch then Po will Duck.
So, Nash equilibrium of this game is - Lala chooses "punch", Po chooses "duck".
The correct answer is the option (3).
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.