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Economics For remaining parts of Problem #4, let us use the following 3-by-3 payoff matrix. VG OTW H VG (4.3) (6. 8) (-2.6) OTW (10,
Economics For remaining parts of Problem #4, let us use the following 3-by-3 payoff matrix. VG OTW H VG (4.3) (6. 8) (-2.6) OTW (10, -3) (11, 2) (8. -5 H (9. 4) (-1, 10) (4, -10) In which, "OTW" simply stands for "on the way", i.e. somewhere between Viktor & Giselle's apartment, and the player's home. Lalo remains Player 1, while Howard remains Player 2. (c) What would be the PSNE of the game? Please work on the above payoff matrix and provide your answer below. Hint: The notation for an empty set is: "O". (8 points) PSNE = (d) For the matrix game provided, identify any action(s) (row/column labels) to be eliminated by iterative elimination of strictly-dominated strategies. Just write down all the eliminated actions, in the order that you find out about their "strict dominated-ness". Hint: Write "N/A " if you could not find any. (8 points)
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