1) A Dog’s Dinner Arfyummies and Woofstuff are rival pet food companies and are

Question

1) A Dog’s Dinner Arfyummies and Woofstuff are rival pet food companies and are choosing among advertising media. Their strategies are the advertising media that they might choose: Facebook, radio, or television. Their payoffs are shown in Table 4.E5.

a) What Nash equilibria exist, if any?

b) Which strategies are rationalizable?

2)Two sisters, Iris and Julia, are students at Nearby College, where all the classes are graded on the curve. Since they are the two best students in their class, each of them will top the curve unless they enroll in the same class. Iris and Julia each have to choose one more class this term, and each of them can choose between math and literature. They're both very good at math, but Iris is better at literature. Each wants to maximize her grade point average. The grade point averages are shown in the table below, which treats their friendly rivalry as a game in normal form.

a. Discuss this game, from the point of view of noncooperative solutions.

b. Does it have a dominant strategy equilibrium?

c. Determine all the Nash equilibria in this game.

d. Do some Nash Equilibria seem likelier to occur than others? Why?

please show work!

Table 4.E5. A Pet Food Advertising Game Woofstuff FacebookRadioTelevision 2,4 Facebook6,6 3,3 ArfyummiesRadio 3,3 3,8 7,2 2,7 Television4,2 9,2

Explanation / Answer

Ans 1)

Nash Equilibrium for above Game is (6,6) because Best Response of ArfYummies to Woodstuffs Response of Facebook is Facebook and similar case with Best Response of WoodStuff to ArfYummies Response of Facebook is Facebook

This is not true for other strategues of any of the players

ANs 1/b)

We need to find whether do we have any dominating strategies to find rationalizable strategies

We can see that there is no dominating strategy available for any of the players hence no strategy of any player gets eliminated therefore rationalizable strategy set for ArfYummies and WoodStuff is (Facebook,Radio,Television) & (Facebook,Radio,Television)

WoofStuff FaceBook Radio Television Arfyummies FaceBook 6,6 2,4 3,3 Radio 3,3 3,8 7,2 Television 4,2 9,2 2,7

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