Nama : Diah Ayu Ratna Sari

NPM : 1411011027

1. The column [1, 10, 20]T dominates the column [2, 0, 0]T False
2. If a game has expected value 2, then the row player will gain two points by playing his optimal mixed
strategy. False
3. There are mixed strategies for which the best response is not a pure strategy. False
4. The column [0, 1, 2]T dominates the column [0, 1, 1]T True
5. An optimal strategy is one that minimizes the maximum damage the opponent can cause. True
6. An optimal strategy is one that maximizes one's maximum potential gain. False
7. Your opponent's knowledge that you are using your optimal strategy does not benefit him in the least. True
8. If you do not know your opponent's strategy, then your best response is never a pure strategy. False
9. Different saddle points in the same payoff matrix always have the same payoff. True
10. According to the principles of game theory, your opponent can always anticipate your move. False
11. If you play against a player who chooses moves completely at random, then your optimal mixed strategy is the
best you can do. False
12. If the row player knows the column player's mixed strategy, then she can respond with a pure strategy for the
best outcome. True
13. The row [0, 0, 0] dominates the row [1, 1, 1] True
14. The payoff matrix is always a square matrix. False
15. The row [1, 10, 20] dominates the row [0, 0, 0] False
16. A negative payoff indicates a loss to the row player. True
17. If a game has expected value 2, then the row player will gain two points on every play assuming both players use
their optimal mixed strategies. False
18. For every mixed row strategy, there is a pure strategy for the column player that maximizes his or her
outcome. True
19. Some strictly determined games do not have saddle points. False
20. Your opponent's knowledge that you are using some specific non-optimal strategy does not benefit him in the
least. True

Solve this problem!

1. Shoe Town and Fancy Foot are both vying for more share of the market. If Shoe Town does no
advertising, it will no lose any share of the market if Fancy Foot does nothing. It will lose 2 % of
market if Fancy Foot invests$ 10,000 in advertising, and it will lose 5 % of the market if Fancy
Foot invests $20,000 in advertising. On the other hand, If Shoe Town invests $15,000 in
advertising , it will gain 3% of the market if Fancy foot does nothing, it will gain 1 % of the
market if Fancy foot invest $10,000 in advertising, and it will lose1% if Fancy foot invest
$20,000 in advertising
a. Develop a payoff table for this problem
b. Determine the various strategy
c. How would you determine the value of the game?
2. Solve This problem
Determine:
1. Dominant Strategy
2. Saddle point