a. How many proper subgames does this dynamic game have? Explain briefly. b. Is it a game of perfect or imperfect information? Explain briefly. c. What is the subgame-perfect equilibrium of this game? Show that it is unique.
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- Look at the attached table. A. What are the Nash equilibrium to this game (if there are any)? B. Are any of the Nash equilibrium efficient? If yes, which one(s)? If any are inefficient, explain why.9. Little Kona is a small coffee company that is consider- ing entering a market dominated by Big Brew. Each company's profit depends on whether Little Kona enters and whether Big Brew sets a high price or a low price: Little Kona Enter Don't Enter High Price Kona makes $2 million Kona makes zero Big Brew Brew makes $3 million Brew makes $7 million Kona loses $1 million Low Price Kona makes zero Brew makes $1 million Brew makes $2 milliona. Draw a game tree that represents this game. How many proper sub- games does it have? b. Are there other game trees that would work? Explain briefly. c. Construct the matrix representation of the normal form of this dynamic game.
- Which of the following statements about a Nash equilibrium is not correct? A. Each player plays a best response to opponents' Nash strategies. B. No player has a profitable unilateral deviation. C. For each finite noncoopertiave game there always exists a pure strategy Nash equilibrium. D. A game has at least two players. Which one of the following statements is incorrect? A. For dynamic games with complete information, not all subgame perfect Nash equilibrium points can be found by backward induction. B. A finite dynamic game with complete information may also have a normal form representation. C. A finite static game with complete information may not have a pure strategy Nash equilibrium. D. A finite static game with complete information cannot have an extensive form representation. Which one of the following statements is correct? A. A supergame cannot have any subgame perfect Nash equilibrium. B. A supergame can only have finite number of subgame perfect Nash…Use the following extensive-form game to answer the following questions. a. List the feasible strategies for player 1 and player 2. b. Identify the Nash equilibria to this game. c. Find the subgame perfect equilibrium.1. A game may have more than one Nash equilibrium. T/F ? 2. A game has always at least one pure strategy Nash equilibrium. T/F? 3. A situation where everyone is playing a dominant strategy must be a Nash equilibrium. T/F?
- Answer all the questions, show all the working. Consider the following game in normal form. Not cooperate Cooperate Not cooperate 20,20 50,0 Cooperate 0,50 40,40 What is Nash equilibrium? Is it efficient? Why? What needs to be complied with so that the players would like to cooperate? What happens when one of the players does not cooperate? Why? Define trigger strategy. Calculate the discount factor (δ) that would make both players decide to cooperate.Which one of the following statements is incorrect? A. A finite static game with complete information may not have a pure strategy Nash equilibrium. B. For dynamic games with complete information, not all subgame perfect Nash equilibrium points can be found by backward induction. C. A finite static game with complete information cannot have an extensive form representation. D. A finite dynamic game with complete information may also have a normal form representation.In a game, a Nash equilibrium is reached only if the players ________. a. understand the game and the payoffs associated with each strategy b. use backward induction to develop their strategies c. follow a mixed strategy d. have no best response for the choices made by other players
- Which of the folliwng is FALSE ? A. Every sequential move games with imperfect information has a pure strategy Subgame Perfect Equilibrium B. Nash Equilibrium is not a suitable solution concept in sequential move games with imperfect information C. Unline sequential move games with perfect information, Backward Induction cannot be directly used if the information is imperfectWhich one of the following statements about the (modified) Stackleberg model is incorrect? A. Firm 1's move is a strategic move. B. Firm 2's move is a strategic move. C. It is can be solved by backward induction. D. It is a dynamic game.29. What is another name for a simultaneous-move game of incomplete information? a. Dynamic Game of Complete Information b. Static Game of Complete Information c. Dynamic Bayesian Game d. Static Bayesian Game
