r to the accompanying game. Firm A Firm B Low Price High Price Low Price (10,9) (15,8) High Price (−10,7) (11,11) What are the secure strategies for firm A and firm B, respectiv
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Refer to the accompanying game.
| Firm A | Firm B | |
|---|---|---|
| Low |
High Price | |
| Low Price | (10,9) | (15,8) |
| High Price | (−10,7) | (11,11) |
What are the secure strategies for firm A and firm B, respectively?
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- Can you help me with the question below? What is [are] the Nash Equilibrium [Equilibria] of this game? A) (10;10) and (20;20) B) (30;30) C) (10;20) and (20;10) D) (20;20) E) (30;30)AsapConsider the following game. Firm 1 can implement one of two actions, A or B. Firm 2 observes the action chosen by Firm 1 and then decides whether to fight it or not. (-10, 20) F2 Fight A Don't fight -(30, 10) Firm 1 (-10, 0) Fight B Don't fight -(20, 15) (a) Consider the following strategy profile: Firm 1 chooses A; Firm 2 chooses fight if A, and fight if B. • this strategy profile is [Select] (b) Consider the following strategy profile: Firm 1 chooses B; Firm 2 chooses fight if A, and don't fight if B. • this strategy profile is [Select] O (c) Consider the following strategy profile: Firm 1 chooses B; Firm 2 chooses don't fight if A and don't fight if B. • this strategy profile is [Select] 00 F2 ()
- Suppose the following game is played infinite times in the future. Time discount is 0.90. What should be the value of x so that the equilibrium strategy is (Cooperate, Cooperate)? Player 2 Player 1 Cooperate Defect Cooperate (x, x) (2, 14) Defect (14, 2) (5, 5)If a strategy profile is a Nash equilibrium, there is at least one player that could achieve higher payoffs by deviating.(a) True. (b) False.Person A English Chinese English 10,10 5,0 Person B Chinese 0,5 5,5 A) Find the Nash equilibria of this two-person game in mixed strategies. B) Is there an equilibrium in which everybody prefers speaking English? If yes, is it stable? C) Is there an equilibrium in where everybody prefers speaking Chinese? If yes, is it stable? D) Is there an equilibrium where some people prefer speaking English, and some prefer speaking Chinese? What is the equilibrium value of p, and is this equilibrium stable?
- Parameter z = 1 How many pure strategy profiles exist in this game?In the following symmetric general sum game (2, 2) (0,0) (0,0) (0,0) (0,0) (2, 2) (0,0) (2,2) (0,0) (i) Find all pure Nash equilibria. (ii) Find all mixed Nash equilibria in which all probabilities are positive. (vi) Which of these are evolutionary stable strategies?Convert into Normal-Form Game and Find out the subgame-Nash Equi- libria? OUT (0, 2) Small Entrant Small IN Entrant Incumbent Large Large Small Large (−6, −6) (−1,1) (1,−1) What does the Information set imply in this game? (-3,-3)
- Player 2 Cooperate (1,000, 1,000) Cheat Player 1 (400, 2,000) Cooperate Cheat (2,000, 400) (500, 500) The above payoff matrix is for two players, each with two strategies. What is the Nash equilibrium of this game? Cheat and Cooperate Cheat and Cheat Cooperate and Cooperate Cooperate and CheatProblem 2. Consider the partnership-game we discussed in Lecture 3 (pages 81-87 of the textbook). Now change the setup of the game so that player 1 chooses x = [0, 4], and after observing the choice of x, player 2 chooses y ≤ [0, 4]. The payoffs are the same as before. (a) Find all SPNE (subgame perfect Nash equilibria) in pure strategies. (b) Can you find a Nash equilibrium, with player 1 choosing x = 1, that is not subgame perfect? Explain.Profits for two competing firms depend on the decisions to advertise or not to advertise as follows: If neither firm advertises, each makes a weekly profit of $100. If one firm advertises while the other does not, the firm that advertises makes $120 while the firm that doesn’t advertise makes $60. If both firms advertise, each firm makes $80. (a) What is the Nash equilibrium? Is this outcome efficient, from the perspective of the two firms? (b) How does the outcome of the game change if the parties can make a binding agreement in advance about advertising practices? (c) How does the game change if it is repeated over the course of many weeks (but the firms cannot make a binding agreement about how much advertising they will do)?
