Nash equilibrium, aggregate payoff and dominant strategies

Reference no: EM1372853

In a two player, one shot simultaneous move game each player can select strategy A or B. If both players select strategy A, each receives a payoff of $500. If both pick B, they get $100 each. If player 1 picks A, and player 2 picks B then player 1 gets $0 and player 2 gets $650. If player 1 chooses strategy B, and player 2 picks strategy A, then player 1 gets $650 and player 2 gets $0.

a) Write the above game in normal form.

b) Find each player's dominant strategy, if it exists.

c) Find the Nash equilibrium (or equilibrium) of this game.

d) Rank strategy pairs by aggregate payoff (highest to lowest)

e) Can the outcome with the highest aggregate payoff be sustained in equilibrium? Why or why not.

Reference no: EM1372853

Questions Cloud

What are some main strategies a project manager can use : What are some main strategies a project manager can use to avoid the escalation of commitment pitfall? Please briefly define each strategy and provide relevant examples

Find the population mean and standard deviation : What shape would you expect the sampling distribution of x bar for n=84 juveniles to have? Does your answer depend on shape of the distribution of verbal IQ scores for all juveniles.

Write script which outputs xhtml text : Write a script which outputs XHTML text that displays in the XHTML document a rectangle, an oval, an arrow, and a diamond using asterisks (*).

Find as well as share the vision statements of companies : Find as well as share the vision statements of five different companies and please discuss the following- Access the vision statements in relation to the frameworks presented

Nash equilibrium, aggregate payoff and dominant strategies : In a two player, one shot simultaneous move game each player can select strategy A or B. If both players select strategy A, each receives a payoff of $500.

Why is listening to walkmans more harmful : A(n) 84 g arrow is fired from a bow whose string exerts an average force of 110N on the arrow over a distance of 80cm. What is the speed of the arrow as it leaves the bow.

Determine possible routing paths in bgp routing table : In the topology, network S is multi-homed to four providers, i.e., P1, P2, P3 and P4, where P1, P2 and P3 are customers of common provider P while P4 is customer. Now assume D is destination of interest. Determine the possible routing paths to D th..

Find the individual masses : Take the questionnaire of Psychology and Your Life. Are you more consistent with right or left brain orientation? How will your strengths help you with your future goals.

One will be your assignment spreadsheet containing : One will be your assignment spreadsheet containing the worksheets you have used to solve this problem

User Account

All Pages