Economics

Game Theory

Dept. of Economics @ NCKU

Weng, Ming-Hung
 Q1

In this game
1. to confess is a dominant strategy to both players.
2. to hold out is a dominant strategy to both players.
3. to confess is a dominant strategy for you but to
hold out is a dominant strategy for Josie.
4. to hold out is a dominant strategy for you but to
confess is a dominant strategy for Josie.
 Q2

Game theory predicts that, in a prisoners dilemma

1. both will confess
2. both will hold out
3. you will confess while Josie will hold out
4. You will hold out while Josie will confess
 Q3
Firm 2 N.E. prescribes the
Low High strategies of the two in
a price war is
1. Low, low
Low 0, 0 15, -5
2. Low, high
Firm 1 3. High, low
High -5, 15 10, 10 4. High, high
 Q4
The row players
stag hare best response
against the
column players
Stag 5, 5 0, 3 hunting hare is
row to hunt
1. stag
hare 3, 0 3, 3
2. hare
 Q5
N.E. prescribes the
L R strategies of the two
as
1. U, L
U 6, 4 2, 5
2. U, R
3. D, L
D 2, 2 3, 3 4. D, R
 Q6

The Nash Equilibrium of this game is that

1. both choose Left
2. both choose Right
3. one chooses Left while the other chooses Right.
4. both choose mixed strategy.