Exam 13: Strategic Games

​Use the following setup for the question. Assume a simultaneous-move game. -​What is the Nash equilibrium of the game?

​The Nash equilibrium was named after

​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. -​What is the Nash equilibrium of this 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 Tattling Tina tattles,what would Bratty Brenda's best response be

​A tit for tat strategy,players __________

​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 -​What would be the Nash equilibrium of this simultaneous game?

​In a two-person repeated game,a tit-for-tat strategy is

​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 shoplifter knows that the security guard has a reputation of always being vigilant,what is his best response?

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

​Use the following case from question A couple gets into an argument deciding where they would go out together.Both like to spend like with each other and have the payoffs as below -​What would be the Nash equilibrium of this simultaneous game?

​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 street racers are playing a simultaneous game of chicken.They have to race towards each other and whoever swerves first is chicken and faces shame,a loss of 8,while the winner enjoys a gain of 3.If neither stop,they would crash into each other,a loss of 10.If both of them swerve at the same time,they are both chicken and face a loss of 5 each -​If player B destroys his own brakes before the race,and player A sees that,what is player A's best response

​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 shoplifter knows that the security guard has a reputation for sleeping on the job,what would his 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. -​What is the Nash equilibrium of this game?

​First-mover advantage is a characteristic of

​Use the following setup for the question. Assume a simultaneous-move game. -​What is the best response of firm A,given firm B is charging a High Price?

​Use the following case from question Two street racers are playing a simultaneous game of chicken.They have to race towards each other and whoever swerves first is chicken and faces shame,a loss of 8,while the winner enjoys a gain of 3.If neither stop,they would crash into each other,a loss of 10.If both of them swerve at the same time,they are both chicken and face a loss of 5 each -​If player B destroys his own brakes before the race,and player A sees that ,what would the new Nash equilibrium be in this case?

​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. -​Is the equilibrium efficient?

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.​ -​In a sequential game,given Mattie's best response function,what would Irene'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. -​Is this outcome efficient?