Question
Country A is rich and country B is poor. Consequently, residents of country B want to immigrate to country A. The trouble is that there
Country A is rich and country B is poor. Consequently, residents of country
B want to immigrate to country A. The trouble is that there is no legal way
to do. So they attempt to cross the border illegally. There are 3 border crossings
at which a resident of B may attempt to cross the border. An attempt
is successful if there is no border guard at the crossing, and unsuccessful if
there is a guard at the crossing. Country A has only 1 border guard. Model
the game in which a resident of country B attempts to enter country A at
one of the 3 border crossings, and the government of country A chooses to
post its border guard at one of the 3 border crossings. In this game, each
player has three pure strategies.
(a) What are the ultimate outcomes in this game?
(b) What are the player's Bernoulli payoffs?
(c) Find a mixed strategy equilibrium of the game. [((1/3, 1/3, 1/3), (1/3,
1/3, 1/3))]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started