Describe a mixed strategy equilibrium of the game

Assignment Help Game Theory
Reference no: EM131251808

Consider a game between a police officer (player 3) and two drivers (players 1 and 2). Player 1 lives and drives in the Clairemont neighborhood of San Diego, whereas player 2 lives and drives in the Downtown area. On a given day, players 1 and 2 each have to decide whether or not to use their cell phones while driving. They are not friends, so they will not be calling each other. Thus, whether player 1 uses a cell phone is independent of whether player 2 uses a cell phone. Player 3 (the police officer) selects whether to patrol in Clairemont or Downtown. All of these choices are made simultaneously and independently.

Note that the strategy spaces are S1 = {U, N}, S2 = {U, N}, and S3 = {C, D}, where "U" stands for "use cell phone," "N" means "not use cell phone," "C" stands for "Clairemont," and "D" means "Downtown." Suppose that using a cell phone while driving is illegal. Furthermore, if a driver uses a cell phone and player 3 patrols in his or her area (Clairemont for player 1, Downtown for player 2), then this driver is caught and punished. A driver will not be caught if player 3 patrols in the other neighborhood. A driver who does not use a cell phone gets a payoff of zero. A driver who uses a cell phone and is not caught obtains a payoff of 2.

Finally, a driver who uses a cell phone and is caught gets a payoff of -y, where y > 0. Player 3 gets a payoff of 1 if she catches a driver using a cell phone, and she gets zero otherwise.

(a) Does this game have a pure-strategy Nash equilibrium? If so, describe it. If not, explain why

(b) Suppose that y = 1. Calculate and describe a mixed-strategy equilibrium of this game. Explain whether people obey the law.

(c) Suppose that y = 3. Calculate and describe a mixed-strategy equilibrium of this game. Explain whether people obey the law.

Reference no: EM131251808

Questions Cloud

Explain the advantages of the flexible exchange rate regime : List and explain the advantages of the flexible exchange rate regime. Criticize the flexible exchange rate regime from the viewpoint of the proponents of the fixed exchange rate regime.
Find the mixed strategy nash equilibrium : Does this game have a pure-strategy Nash equilibrium? -Find the mixed-strategy Nash equilibrium. - Describe the equilibria of the game in which player 1's extra satisfaction from selecting box A is equivalent to receiving $120.
Identify and explain the stages of team development : Identify and describe the stages of team development. How might stronger team skills benefit you? How might you use teamwork skills in your job? Provide specific examples.
Identify the null and alternative hypothesis : a) identify the null and alternative hypothesis, show work b) determine the test statistic, show work c) determine the p value, show work
Describe a mixed strategy equilibrium of the game : Does this game have a pure-strategy Nash equilibrium? If so, describe it. If not, explain why. - describe a mixed-strategy equilibrium of this game. Explain whether people obey the law.
Create an annotated bibliography focusing on models used : Create an annotated bibliography focusing on models used by companies to leverage diversification. These models also can serve to construct a portfolio management tool that characterizes business unit strategy and measures company results.
Identify the correct measure of dispersion : For the variables, HOME, ARREST, TENURE and SIBS, identify the correct measure of dispersion and explain why it is appropriate. Locate the values for the measure on the tables and report them for each variable.
Probability that they are upper class : If selected student has a GPA above 2.5 what is the probability that they are upper class?
What is the projected job market for tennessee : What education, experience and training will be necessary for you to be hired as an entry level professional?  What is the projected job market for Tennessee in your career field in the future, (by the time you graduate?) Will you need to relocate

Reviews

Write a Review

Game Theory Questions & Answers

  Show that game has no nash equilibrium in pure strategies

Show that the game has no Nash equilibrium in pure strategies, and that the pair of mixed strategies in which each player chooses 1, 2, and 5 each with probability 1 is a mixed strategy Nash equilibrium.

  Write a description of a game in which you have participated

Write a brief description of a game in which you have participated, entailing strategic moves such as a commitment, threat, or promise and paying spe­ cial attention to the essential aspect of credibility.

  Probability related to scooters pass inspection

A scooter factory runs three assembly lines, A, B, and C. 98.9% of line A's scooters pass inspection, while only 97.8% of line B's scooters and 98.5% of line C's scooters pass inspection.

  Embarked on a quality improvement program

Ashland MultiComm Services (AMS) is a residential telecommunications provider. The AMS technical services department has embarked on a quality improvement program. Its first project relates to maintaining the target upload speed for its Internet s..

  Write down an expression for the wheel monopolists profit

Write down an expression (in terms of w) for the wheel monopolist's profit. Show that for any w> 0, the total profits of the skate and wheel monopolists is lower than the integrated monopolist's profit.

  A supplier and a buyer who are both risk neutral play the

a supplier and a buyer who are both risk neutral play the following game the buyer orders a good of quality q ge0 from

  Solve the game using iterated removal

Two suspects in a major crime are held in separate cells. There is enough evidence to convict each of them of a minor offense, but not enough evidence to convict either of them of the major crime unless one of them acts as an informer against the ..

  Find a bernoulli payoff function that assigns a payoff

Find a Bernoulli payoff function whose expected value represents the decision-maker's preferences and that assigns a payoff of 1 to the best outcome and a payoff of 0 to the worst outcome.

  Spell-checker in a desktop publishing application

The spell-checker in a desktop publishing application may not catch all misspellings (e.g. their, there) or correctly interpret the spellings of proper names.

  Explain subgame perfect equilibrium

Suppose you are planning entering a market serviced through a monopolist. You currently receive $0 economic profits, while monopolist receives $5.

  Does each firm have a dominant strategy

Does each firm have a dominant strategy? If so, explain and what that strategy is and what is the Nash equilibrium? Explain where the Nash equilibrium occurs in the payoff matrix.

  What is the average annual decline rate

In an enterprise the unit cost of the product is 200 dollars in 2000, 160 dollars in 2005, please calculate the average annual decline rate of unit cost during the period from 2000 to 2005. If in 2010 the unit cost of the product down to 112 dolla..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd