Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I am stuck on this part of my homework Part 3: A Board Game Arturo and Beatrice are playing the board game Colonizers of Katan

I am stuck on this part of my homework\

image text in transcribed
Part 3: A Board Game Arturo and Beatrice are playing the board game "Colonizers of Katan Legacy." There are two turns left in this game, with Arturo and Beatrice currently tied at 12 points each. It is Arturo's turn. Arturo can decide to pass, which ends this game in a tie, or move the game to the final round. If the game reaches the final round, each player decides simultaneously to either go to war or call for peace. If both players call for peace, they get one extra point each. If both players call for war, they get minus 10 extra points each. If one calls for peace and the other calls for war, the person who calls for war gets 4 extra points, and the other person gets minus 4 extra points. Players want to maximize their total individual points in the game. That is, a player's payoff is the sum of her current points and whatever points she gets in the final round, if a final round takes place. 10. Consider the subgame that starts if Arturo moves the game to the final round. What are the pure and mixed strategy Nash equilibria of that subgame? (a) Pure strategy equilibria: (War, Peace); (Peace, War) Mixed strategy equilibrium: Arturo plays "War" with probability ; and "Peace" with probability -, and Beatrice plays "War" with probability } and "Peace" with probability . (b) Pure strategy equilibria: None Mixed strategy equilibrium: Arturo plays "War" with probability } and "Peace" with probability , and Beatrice plays "War" with probability } and "Peace" with probability 1. (c) Pure strategy equilibria: (War, Peace); (Peace, War) Mixed strategy equilibrium: Arturo plays "War" with probability ; and "Peace" with probability ,, and Beatrice plays "War" with probability } and "Peace" with probability ]. (d) Pure strategy equilibrium: (War, War) Mixed strategy equilibrium: Arturo plays "War" with probability } and "Peace" with probability , and Beatrice plays "War" with probability , and "Peace" with probability . 11. What is the expected payoff for each player under the mixed strategy Nash equilibrium in the final round subgame? (a) 22.66 6 (b) 11.33 (c) 12 (d) 13 12. Now consider the whole game. Focusing exclusively on the Subgame Perfect Nash Equilibrium in which a mixed strategy is played in the final round subgame, what can we say about Arturo's equilibrium decision of whether to pass or take the game to the final round? (a) Arturo passes (b) Arturo moves the game to the final round (c) Arturo plays a mixed strategy, in which both passing and moving the game to the final round can happen with positive probability (d) We do not have enough information to answer this

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

Principles of economics

Authors: N. Gregory Mankiw

6th Edition

978-0538453059, 9781435462120, 538453052, 1435462122, 978-0538453042

More Books

Students also viewed these Economics questions