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Game Theory: Please show your work and explain the answers to help me understand

ID: 1149298 • Letter: G

Question

Game Theory: Please show your work and explain the answers to help me understand the process

Consider the following normal form game between A and B. Use iterated elimination of dominated strategies, if possible, to find the solution to the three games 1. C1 5, 4 X, 12 C2 C3 A R1 R2 7,7 3, 10 1, Y 9, 10 a. b. C. Let X = 5 & Y = 2 . Find the solution Let X = 6 & Y = 9. Find the solution Let X = 3 & Y 11. Find the solution 2. Consider the following game between A and B A up down Left 5, 5 4,Z Right 2, 0 Find precise restrictions on the allowable values of Z so that it is guaranteed that this game cannot be solved using IEDS

Explanation / Answer

Answer for 1)

a) If X=5 Y=2

If we compare Player A's action (R1,R2) There is no dominance as 5=5,7>3 &1<9 hence no dominatin strategy available with player A

If we compare Player B's action (C1,C2,C3) then we can see that C1 strictly dominates C3 and C2 weakly dominates C3 hence we C3 is dominated by C1 hence we can eliminate C1.

Now the matrix we have is

C1 C2

R1 (5,4) (7,7)

R2 (5,12) (3,10)

In this reduced form we have NE at (R2,C1)

Answer for part b

x=6, Y=9

If we compare Player A's action (R1,R2) There is no dominance as 5<6,7>3 &1<9 hence no dominatin strategy available with player A

If we compare Player B's action (C1,C2,C3) then we can see that C3 weakly dominates C2 Hence C2 can be eliminated

Now the matrix we have is

C1 C3

R1 (5,4) (1,9)

R2 (6,12) (9,10)

In this reduced form we have NE at (R2,C1) again.

Answer for Part C

X=3, Y=11

If we compare Player A's action (R1,R2) There is no dominance as 5>3,7>3 &1<9 hence no dominatin strategy available with player A

If we compare Player B's action (C1,C2,C3) then we can see that C3 weakly dominates C2 hence we can eliminate C2

Now the matrix we have is

C1 C3

R1 (5,4) (7,9)

R2 (3,12) (3,10)

In this reduced form we have NE at (R1,C3)

Answer for Q2

If No Iterated elimination is allowed then for Player A "Z" should be more than 2 & for player B "Z" should be less than 3 hence combining both these inequalities we get the region where Z can take any value

2<Z<3