Exam 13: Strategic Games

​Use the following case from question A shoplifter and a security guard are playing a simultaneous game.If the shoplifter steals and the security guard is vigilant,the shoplifter gets caught she suffers a loss of 20,and the security guard gets a bonus worth 15.If the shoplifter steals and the security guard is not vigilant,she does not get caught and gains 15 and the guard loses 5.If the shoplifter does not steal and the guard is vigilant,the guard loses 3 for the effort,while the shoplifter gains nothing and if the shoplifter does not steal and the guard is not vigilant,neither gain anything -​If the security guard knows that the shoplifter has been caught before,his best response would be

​Refer to the following normal form game of price competition question -​What is the payoff for each firm in this simultaneous game?

​Use the following case from question Two siblings,Bratty Brenda and Tattling Tina are playing a simultaneous hit and tell game.Bratty Brenda can hit Tattling Tina or not and Tattling Tina can tattle on Bratty Brenda or not.Relative to no hitting and no tattling,if Bratty Brenda hits Tattling Tina,and she tattles they both experience a loss of 10.Not telling,gets Tattling Tina a bruise,a loss of 5 but Bratty Brenda gains 5.If she tattles untruthfully,Tattling Tina gets a gain of 5 and Bratty Brenda loses 5.If they get along,no one gets anything -​If Bratty Brenda decides not to hit Tattling Tina,what would Tattling Tina's best response be?

​Use the following to answer question ​Sam and Sarah are thinking about getting married.However if either of them cheats on the other,they would get a payoff of 10,while the other person gets zero.If neither cheat,they stay with each other and get a payoff of 7 each and if both cheat,the relationship falls apart and each get a payoff of 1. -​The equilibrium of this game indicates

​A Prisoners Dilemma illustrates the fact that

Use the following case from question Irene's Dairy is deciding whether or not to enter the market for ice cream,currently monopolized by Mattie's Ice-cream.If it enters the market,Mattie's can either accommodate him and share his 10million in profits equally with Irene or fight him and cause a 5million loss for each in a price war.​ -​What would the profits be for Mattie's Dairy if Irene does not enter the market?

​Use the following case from question Two siblings,Sarah and Tom are playing a simultaneous hit and tell game.Sarah can hit Tom or not and Tom can tattle on Sarah or not.Relative to no hitting and no tattling,if Sarah hits Tom,and he tattles they both experience a loss of 10.Not telling,gets Tom a bruise,a loss of 5 but Sarah gains 5.If he tattles untruthfully,he gets a gain of 5 and Sarah loses 5.If they get along,no one gets anything -​If Tom tattles,what would Sarah's best response be

​Use the following case from question Two siblings,Bratty Brenda and Tattling Tina are playing a simultaneous hit and tell game.Bratty Brenda can hit Tattling Tina or not and Tattling Tina can tattle on Bratty Brenda or not.Relative to no hitting and no tattling,if Bratty Brenda hits Tattling Tina,and she tattles they both experience a loss of 10.Not telling,gets Tattling Tina a bruise,a loss of 5 but Bratty Brenda gains 5.If she tattles untruthfully,Tattling Tina gets a gain of 5 and Bratty Brenda loses 5.If they get along,no one gets anything -​If Tattling Tina wants to not be hit,what strategy could she follow

​Use the following case from question Two roommates John and Joe are playing a simultaneous game of cleaning the apartment.If neither of them clean,the apartment gets filthy and both get a utility of 2.If John cleans and Joe doesn't,John gets a utility of 1 and Joe gets a utility of 4.If Joe cleans and John doesn't,Joe gets a utility of 1 and John gets a utility of 4 and if both clean up the apartment,they each get a utility of 3. -​If the apartment owner decides to fine both the roommates if the apartment is dirty,such that now if neither of them clean they each get a 5 utility loss,what would the new equilibrium be now?

​Which one of the following is a way to get out of a repeated Prisoner's Dilemma Nash Equilibrium?

​Use the following case from question Two roommates John and Joe are playing a simultaneous game of cleaning the apartment.If neither of them clean,the apartment gets filthy and both get a utility of 2.If John cleans and Joe doesn't,John gets a utility of 1 and Joe gets a utility of 4.If Joe cleans and John doesn't,Joe gets a utility of 1 and John gets a utility of 4 and if both clean up the apartment,they each get a utility of 3. -​If the apartment owner can somehow see the effort of the each of the room mates and punishes with a loss of 5 to any room mate who doesn't clean,is that likely to lead to a more efficient outcome?

​Use the following case from question Two ice cream trucks A&B are playing a simultaneous pricing game.If one of them prices low,he gets all the customers,a payoff of 12,while other gets zero.If both price high they each get a payoff of 6 and if both price low,they get a payoff of 5. -​Does the Nash equilibrium yield maximum profit?

​Use the following case from question Two siblings,Sarah and Tom are playing a simultaneous hit and tell game.Sarah can hit Tom or not and Tom can tattle on Sarah or not.Relative to no hitting and no tattling,if Sarah hits Tom,and he tattles they both experience a loss of 10.Not telling,gets Tom a bruise,a loss of 5 but Sarah gains 5.If he tattles untruthfully,he gets a gain of 5 and Sarah loses 5.If they get along,no one gets anything -​If Tom does not tattle,what would Sarah's best response be

​Use the following case from question Two ice cream trucks A&B are playing a simultaneous pricing game.If one of them prices low,he gets all the customers,a payoff of 12,while other gets zero.If both price high they each get a payoff of 6 and if both price low,they get a payoff of 5. -​The types of games analyzed by the Nash equilibrium are

​Nash equilibrium is:

​Refer to the following normal form game of price competition question -​Suppose this is a repeated game where the firms adopt a trigger strategy.What would the trigger strategy look like?

​Ban Consultants A firm and its supplier are going to negotiate a deal every quarter.Since the supplier's cost is $10 million per quarter and the value to the firm is $14 million per quarter,there is $4 million per quarter to split between the two.However,they can hire a negotiation consultant for a quarter for $500,000.If neither hires the consultant,each expects to get half of the $4 million pot.If only one hires the consultant,it expects to get three-fourths of the pot minus the consultant costs.If they both hire consultants,they cancel each other out and they expect to get half the pot minus the consulting costs.They expect to repeat this process every quarter for the foreseeable future.Can they agree to ban the consultants?

​Use the following case from question Two siblings,Sarah and Tom are playing a simultaneous hit and tell game.Sarah can hit Tom or not and Tom can tattle on Sarah or not.Relative to no hitting and no tattling,if Sarah hits Tom,and he tattles they both experience a loss of 10.Not telling,gets Tom a bruise,a loss of 5 but Sarah gains 5.If he tattles untruthfully,he gets a gain of 5 and Sarah loses 5.If they get along,no one gets anything -​If Sarah decides not to hit Tom,what would Tom's best response be

​Use the following case from question Two siblings,Sarah and Tom are playing a simultaneous hit and tell game.Sarah can hit Tom or not and Tom can tattle on Sarah or not.Relative to no hitting and no tattling,if Sarah hits Tom,and he tattles they both experience a loss of 10.Not telling,gets Tom a bruise,a loss of 5 but Sarah gains 5.If he tattles untruthfully,he gets a gain of 5 and Sarah loses 5.If they get along,no one gets anything -​If Tom threatens to tell,what would Sarah's best response be?

​Use the following case from question Two siblings,Bratty Brenda and Tattling Tina are playing a simultaneous hit and tell game.Bratty Brenda can hit Tattling Tina or not and Tattling Tina can tattle on Bratty Brenda or not.Relative to no hitting and no tattling,if Bratty Brenda hits Tattling Tina,and she tattles they both experience a loss of 10.Not telling,gets Tattling Tina a bruise,a loss of 5 but Bratty Brenda gains 5.If she tattles untruthfully,Tattling Tina gets a gain of 5 and Bratty Brenda loses 5.If they get along,no one gets anything -​If Bratty Brenda decides to hit Tattling Tina,what would Tattling Tina's best response be