- Q4 A Large Game At least once per game theory class, students are commonly asked to solve a long MSNE problem. Spend the time now so you are confident and prepared for future questions. P2 R Y G B E 16,-7 8,2 18,-7 10,5 W -3,18 6,-7 8,-7 17,18 P F 9, 19 20,-4 13,6 10, 16 A -9,20 14,16 15,-5 -3,4 (a) Start by eliminating all strictly dominated strategies in the above game. (b) If you are left with a 3x2 game in (a), graph the expected payoffs for player 1, assuming that P2 is mixing between their two remaining strategies. Eliminate any strategy/strategies that are non-rationalizable, in the mixed-strategy sense. If you were left with a 2x2 game in part (a), proceed to part (c). Hint: This may sound like it would be easier to return to (a) and try to the reduce the game further, if you have not already done so. In my opinion, it is easier to just do (b) as described above. (c) Derive the conditions for each player which tell us when they are indifferent between their remaining strategies. (d) Using your results from part (c), derive the best-response correspondences for each player. (e) Graph the best-response correspondences for each player. (f) Record all NE that you have found. How many NE are there?