MA3662 Exercise Sheet 2
Question 1
Represent the following game in normal form as a matrix game.
Can you give a different game in extensive form with the same normal form?
Question 2
Suppose that players 1 and 2 have payoff matrices \(A\) and \(B\) respectively where \[A=\left(\begin{array}{rrr} 1 & 0 & -2\\ 3 & 4 & 1\\ 2 & -2 & -2\end{array}\right) \quad\quad B=\left(\begin{array}{rrr} 3 & -1 & 4\\ -2 & 1 & 0\\ -4 & 2 & 1\end{array}\right).\] If player \(A\) chooses each strategy with equal probability and player \(B\) chooses strategy one 10% of the time, strategy two 25% of the time, and strategy three otherwise, calculate the expected values of the game for player 1 and player 2.
Question 3
Use iterated dominance of pure strategies to simplify the following game:
Strategy 1 | Strategy 2 | Strategy 3 | Strategy 4 | |
---|---|---|---|---|
Strategy 1 | \((8,7)\) | \((4,2)\) | \((5,5)\) | \((6,1)\) |
Strategy 2 | \((2,1)\) | \((6,3)\) | \((8,0)\) | \((1,3)\) |
Strategy 3 | \((2,3)\) | \((5,7)\) | \((1,1)\) | \((10,6)\) |
Strategy 4 | \((3,4)\) | \((4,5)\) | \((8,1)\) | \((9,4)\) |
Question 4
Consider the game
A | B | C | D | |
---|---|---|---|---|
x | \((3,6)\) | \((4,10)\) | \((5,0)\) | \((0,8)\) |
y | \((2,6)\) | \((3,3)\) | \((4,10)\) | \((1,1)\) |
z | \((1,5)\) | \((2,9)\) | \((3,0)\) | \((4,6)\) |
Is there a mixed strategy for player 1 using just two of \(x\), \(y\), \(z\) that dominates the remaining pure strategy?