Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3. (25%) Consider a strategic-form game with 3 players i = 1,2,3 whose actions Xi are numbers from the set (1,2,3,4). If any two or

image text in transcribed

3. (25%) Consider a strategic-form game with 3 players i = 1,2,3 whose actions Xi are numbers from the set (1,2,3,4). If any two or all players select the same number x, then each player i (including the player with a possibly different number) receives the payoff equal to this number, U;= x. In all other cases, that is, if all numbers are different, then each player receives the payoff 2. (a) Find any (just one) Nash equilibrium (x1*,x2*,x3*) in which the payoff of each player i = 1,2,3 is Uf(x2*,x2*,x3*) = 3 and verify it. (b) Is there a Nash equilibrium in which all player's numbers are different? If yes, then find any such an equilibrium and verify it. If no, then show that for any action profile with all different numbers there is a player and a profitable deviation for that player. 3. (25%) Consider a strategic-form game with 3 players i = 1,2,3 whose actions Xi are numbers from the set (1,2,3,4). If any two or all players select the same number x, then each player i (including the player with a possibly different number) receives the payoff equal to this number, U;= x. In all other cases, that is, if all numbers are different, then each player receives the payoff 2. (a) Find any (just one) Nash equilibrium (x1*,x2*,x3*) in which the payoff of each player i = 1,2,3 is Uf(x2*,x2*,x3*) = 3 and verify it. (b) Is there a Nash equilibrium in which all player's numbers are different? If yes, then find any such an equilibrium and verify it. If no, then show that for any action profile with all different numbers there is a player and a profitable deviation for that player

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Sound Investing, Chapter 15 - Liability Tricks

Authors: Kate Mooney

2nd Edition

0071719377, 9780071719377

More Books

Students also viewed these Accounting questions

Question

What inputs do you need to be ready to apply the WACC method?

Answered: 1 week ago

Question

Are there professional development opportunities?

Answered: 1 week ago

Question

Discuss the six purposes of performance management. page 340

Answered: 1 week ago