Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help with 2.F Mixed Strategies and Athletes on Steroids. Suppose two athletes are competing in an important race and either NO athlete has a

Please help with 2.F

image text in transcribed
Mixed Strategies and Athletes on Steroids. Suppose two athletes are competing in an important race and either NO athlete has a choice of whether they should take performance enhancing steroids or not. Although there is a risk of getting caught, if one takes the drug the other doesn't, the one who does is likely to win and the payoff to winning is enough to offset the expected cost of getting caught. If both take the drug, neither athlete gets the edge and both face the chance of getting caught and punished, in which case, both are better off if neither took the drug. The game is given below. Horst q 1-q Steroids 1/2 No Drugs Jonathan 1/3 p Steroids (0, 0) (6, 2) 1- p No Drugs (1, 4) (3, 3) 1/3 1/2 1 P (2.A) What is the mixed strategy for Jonathan? Note that p = the probability that the Jonathan will take steroids and 1 - p is the probability that he will not. Show your work to get full credit. Hint: to find p*, Horst has to be indifferent between choosing taking steroids and not taking them. (4 points) (2.B)What is the mixed strategy for Horst? What is the percentage (q) of the time that he will randomly take steroids to enhance his performance? What is the probability (1 -q) that he will not? Show your work. Find q* that makes Jonathan indifferent between taking steroids and not taking them. (4 points) (2.F) In the graph below depict the best-response functions for Jonathan and Horst. That is, for Jonathan, what are the best choices of p for given levels of q? Label this curve BRlos, A similar analogy holds with respect to Horst and BRHout. Make sure you also depict the Nash Equilibria of this game, whether in pure or mixed strategies. (7 points)

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_2

Step: 3

blur-text-image_3

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

Global Capitalism Its Fall And Rise In The Twentieth Century

Authors: Jeffry A Frieden

1st Edition

0393058085, 9780393058086

More Books

Students also viewed these Economics questions