What is the Nash Equilibrium of this game? Firm Develop Don't Develop Protect Don't Develop, Protect O Develop, Don't Protect O Don't Develop, Don't Protect O Develop, Protect -3,2 1,1 Government Don't Protect 8,10 0,2
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- Sometimes oligopolies in the same industry are very different in size. Suppose we have a duopoly where one firm (Film A) is large and the other film (Film B) is small, as the prisoners dilemma box in Table 10.4 shows. Assuming that both films know the payoffs, what is the likely outcome in this case?Firm BStrategy 1 Strategy 2Strategy 1: 28, 28 15, 35Firm AStrategy 2: 35, 15 20, 20Does Firm B have a dominant strategy? If so, which strategy?Course dashboard Use the following statements to answer this question I. A player must have at least one dominant strategy in a game. II If neither player in a game has a dominant strategy in a game, then there is no equilibrium outcome for the game. Lutfen birini seçin O a land Il are true. obland Il are false Octistrue and il is false. Oaiistme andisface Seçimlmi temizle SONRAKİ SAYFA
- 4. Suppose in 1977 Honda and Toyota each have to decide whether to build an automobile plant in the North American market. The payoff matrix below shows Honda's payoff on the left, and Toyota's on the right. Is there a Nash equilibrium? If so, where, and how do you know? Тoyota Build small Don't build anything plant Build small 16, 16 20, 15 Honda plant Don't build anything 15, 20 18, 1812. An important characteristic of a dominant strategy is that: Select one: a. it is the best strategy to dominate your opponents b. it always leads to a Nash equilibrium where all players equally well off c. it can prevent the game reaching a Nash equilibrium d. it is the best strategy for a player, regardless of whatever strategy the opponent choosesIs this strategy a sub-game perfect Nash Equilibrium? Player 2: a c e Player 1: A DE C 2 True False A d B e a 2 1 2 1 A D E חח 0 0 1 F -1 1000
- P&G 1.10 1.20 1.10 - 226 - 215 1.20 - 106 - 89 1.30 - 56 - 37 1.40 - 44 - 25 1.50 - 52 -32 1.60 - 70 -51 - 93 -76 1.70 1,80 - 118 - 102 Why is this situation an example of the prisoners' dilemma game? This game is a type of prisoners' dilemma because O A. the firms are rivals. OB. competing maximizes joint firm profits. O C. the game results in cooperation. Click to select your answer. 1.30 - 204 -73 - 19 -6 - 15 - 34 - 59 -87 1.40 -194 - 58 2 S 12 5 3 - 18 -44 -72 1.50 - 183 - 43 15 29 20 -1 - 28 -57 1.60 - 174 - 28 31 46 36 14 -13 -44 1.70 - 165 - 15 47 62 52 30 1 -30 130 15228841517 1.80 - -2 62 68 4428 A payoff matrix shows the payoffs (i.e. bribes) required to government officials for firms undertaking specific actions. A details the actions each firm takes. shows the payoffs to each firm for each possible outcome. is optional in game theory. 29 A player's best response is the strategy that maximizes his payoff given what he thinks the other player will do. a dominant strategy. A В impossible to find when there isn't a Nash equilibrium. a way to avoid the prisoners' dilemma. D 30 Strategic advertising in the cola market significantly expands the size of the market. brings in few new customers and primarily shifts market share among A В rivals. shifts market demand to the right, increasing quantity sold and decreasing prices. has no impact on the market. C D B.What is the Nash Equilibrium in a game?A. A situation where all players cooperate for maximum gainB. A situation where no player can improve their outcome by changing their strategy unilaterallyC. A situation where players always choose the same strategyD. A situation where players randomly select strategies
- fnan421 WWord Gozden Geç r Gorunum Varc m Ne yaomak steci gnz soy evn 1) Two firms, X and Y, are planning to market their new products. Each firm can develop either TV or Laptop. Market research indicates that the resulting profits to each firm for the alternative strategies are given by the following payoff matrix: FIRM Y TV LAPTOP FIRM X TV 30, 30 50, 35 LAPTOP 40,70 20, 20 A) If both firms make their decisions at the same time and follow maximin (low-risk) strategies, what will the outcome be? B) Suppose both firms try to maximize profits, but Firm X has a head start in planning, and can commit first. Now what will the outcome be? What will the outcome be if Firm Y has a head start in planning and can commit first? I1. Find all subgame perfect nash equilibrium 2. Find a nash equilibrium that is not SPNE, and explain why it is not an SPNE.UofC Aggressive Restrained Aggressive 18, 26 29,47 MRU Restrained 45, 59 32, 23 Consider the case of a Sequential-Move game. Uofc moves First Part 1. Is UofC 's sub-game Perfect Nash Equilibrium strategy Aggressive or Restrained? (Answer 1 for aggressive and 2 for Restrained) 1 Part 2. Is MRU's sub-game Perfect Nash Equilibrium strategy Aggressive or Restrained? (Answer 1 for aggressive and 2 for Restrained) Number: Part 3. How much profit does UofC make under the Sub-game perfect Nash-Equilibrium? Number Part 4. How much profit does MRU make under the Sub-game perfect Nash-Equilibrium? Number