Question
A strategic game is dominance solvable is all players are indifferent between all outcomes that survive the iterative procedure in which all the weakly dominated
A strategic game is dominance solvable is all players are indifferent between all outcomes that survive the iterative procedure in which all the weakly dominated actions of each player are eliminated at each stage.
a.Give an example of a strategic game that is dominance solvable but for which it is not the case that all players are indifferent between all outcomes that survive iterated elimination of weakly dominated actions (a procedure in which not all weakly dominated actions may be eliminated at each stage).
b.Using the concept of dominance solvability, answer the following question: Each of two players announces a nonnegative integer equal to at most 100. If , 2 where is the number announced by player , then each player i receives payof of . If , and < then playerreceives and player receives 100 . If and = then each player receives 50. Show that the game is dominance solvable and find the set of surviving outcomes.
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