1. Suppose that two players are playing the following game. Player A can choose
ID: 1127376 • Letter: 1
Question
1.
Suppose that two players are playing the following game. Player A can choose either Top or Bottom, and Player B can choose either Left or Right. The payoffs are given in the following table where the number on the left is the payoff to Player A, and the number on the right is the payoff to Player B.
Does Player A have a dominant strategy? If so, what is it?
None of the above
2.
Does Player B have a dominant strategy? If so, what is it?
None of the above
3.
For the next four questions, you’ll be asked whether a strategy combination is a Nash equilibrium or not. Player A plays Top and Player B plays Left
This is NOT a Nash equilibrium
4.
Player A plays Bottom and Player B plays Left
This is NOT a Nash equilibrium
5.
Player A plays Top and Player B plays Right
This is NOT a Nash equilibrium
6.
Player A plays Bottom and Player B plays Right
This is NOT a Nash equilibrium
7.
If each player plays her maximin strategy, what will be the outcome of the game?
Player A plays Bottom and Player B plays Right
8.
Now suppose the same game is played with the exception that Player A moves first and Player B moves second. Using the backward induction method discussed in the online class notes, what will be the outcome of the game?
Top is a dominant strategy for Player A Question: I ONLY HAVE HOUR AND A HALF PLEASE ANSWER FAST 1. Su… ECONOMICS Player B Left Right Top Bottom3 4 Player AExplanation / Answer
1. Player A has the dominant strategy in choosing TOP. Because TOP gives player A more pay off in both situations, when player B chooses left or right. Therefore, TOP is a dominant strategy for player A.
2. No, player B doesn't have a dominant strategy because when player A chooses TOP then player B has more pay off in choosing RIGHT, while when player A choose BOTTOM then Player B has more pay off in choosing LEFT. Therefore, player B doesn't have the dominant strategy.
3. Player A plays TOP and player B plays LEFT . This is not a nash equilibrium.
4. Player A plays BOTTOM and player B plays LEFT. This is not a nash equilibrium.
5. Player A plays TOP and Player B plays RIGHT. This is a nash equilibrium. Both has more pay off in choosing the given strategy , given what other chooses.
6. Player A plays BOTTOM and player B plays RIGHT . This is not a nash equilibrium.
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