A Beautiful Mind Watch the bar scene in the famous movie A Beautiful Mind. Can the strategy profile where everyone in the group goes for the brunettes be Nash equilibrium as suggested in the movie? If not, put forth a scenario that would constitute a Nash equilibrium. Working in assigned teams, use your knowledge of […]
If you were risk neutral and there was a clairvoyant, what would be the value of perfect information for chance node A?
Game Theory Part B (20 pts total): Consider the following two-player game. Answer the following two questions. Each are worth 10 pts. Player 2 𝒍 𝒄 𝒓 Player 1 T 1, 1 0, 1 3, 1 M 1, 0 2, 2 1, 3 D 1, 3 3, 1 2, 2 B.1. Are there any strictly […]
Show that we have a mixed strategy Nash equilibrium where each strategy is played with probability i. Give a brief explanation to why this game does not have a pure strategy Nash equilibrium.
Micro Economics A group of 10 students are matched into pairs to play rock paper scissors. They must simultaneously make a shape with their hand; scissors beats paper, paper beats rock and rock beats scissors. The payoffs are R P S R 1,1 0,2 2,0 P 2,0 1,1 0,2 S 0,2 2,0 1,1 The […]
Explain why this situation could be considered a principal-agent problem. Draw the extensive form of this principal-agent problem and use backward induction to solve for the Nash Equilibrium.
7. In two-car automobile accidents, passengers in the larger vehicle are significantly more likely to survive than are passengers in the smaller vehicle. In fact, death probabilities are decreasing in the size of the vehicle you are driving, and death probabilities are increasing in the size of the vehicle you collide with. Some politicians and […]