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1. Find all NE of the following 2×2 game. Determine which of the NE are trembling-hand perfect.
2. Consider the following two-person game where player 1 has three strategies and player 2 has two strategies. Find all NE of the game.
Hint: this game can be reduced to a 2 × 2 game by eliminating strictly dominated strategies.
3. Consider the following two-person game where each player has three strategies. Find all NE of the game.
Hint: Use the symmetric nature of the game. Also note that since a player has three strategies, its mixed strategy can be one of the following forms: (i) mix only two out of three and (ii) mix all three.
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Equilibrium payoffs are (4, 5). Player A’s equilibrium strategy is “S then S if n and then N if n again.” Player B’s equilibrium strategy is “n if S and then n if S again and then
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what will be the best strategy for a bidder in an auction comprised of four bidders?
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