Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Consider the penalty kick game below. Striker goes East Striker goes West Keeper goes East 1 , 0 0 , 1 Keeper goes West 0

Consider the penalty kick game below.

Striker goes East Striker goes West

Keeper goes East 1 , 0 0 , 1

Keeper goes West 0 , 1 1 , 0

a. Find all Nash (mixed strategy and pure strategy) equilibria of this game.

b. Now say that there is a Sports Illustrated photographer on the west side of the stadium. The striker really likes having their photo taken. So if the striker scores by kicking in the west side of the goal, then the striker not only gets the goal but gets an additional "bonus" of 1. The keeper's payoffs do not change. Model this as a strategic form game. Find all Nash (mixed strategy and pure strategy) equilibria of this game. Note that the coaches of the two teams do not care at all about photographs, and only care about whether a goal is scored. Does the existence of the photographer change the overall probability that a goal is scored?

c. Now say that both keeper and striker really like having their photo taken. Again, if the striker scores by kicking in the west side of the goal, then the striker not only gets the goal but gets an additional "bonus" of 1. Also, if the keeper does a successful save by blocking the shot on the west side of the goal, the keeper gets the save and also an additional "bonus" of 1. Model this as a strategic form game. Find all Nash (mixed strategy and pure strategy) equilibria of this game. Does the existence of the photographer change the overall probability that a goal is scored?

d. Now say that instead of a bonus of 1, both keeper and striker get a bonus of b, where b is a number which is greater than zero (for example, part c. above corresponds to b = 1). As before, if the striker scores by kicking in the west side of the goal, then the striker not only gets the goal but gets an additional "bonus" of b. If the keeper does a successful save by blocking the shot on the west side of the goal, the keeper gets the save and also an additional "bonus" of b. Find all Nash (mixed strategy and pure strategy) equilibria of this game. As b increases (in other words, as keeper and striker become more vain), does the overall probability that a goal is scored increase, decrease, or stay the same?

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

Step: 3

blur-text-image

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

Macroeconomics Principles Applications And Tools

Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez

7th Edition

978-0134089034, 9780134062754, 134089030, 134062752, 978-0132555234

More Books

Students also viewed these Economics questions