100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
ECN214 Games and Strategies – 2013 Questions and Answers £3.99
Add to cart
Quickly navigate to
Preview
  2.  
  3. Queen Mary, University Of London (QMUL)
  4.  
  5. Economics
  6.  
  7. ECN214 Games and Strategies (ECN214)

Exam (elaborations)

ECN214 Games and Strategies – 2013 Questions and Answers

1 review
 0 purchase

High-quality past paper questions and answers for the ECN214 Games and Strategies module for the Queen Mary University of London (QMUL) Economics Course. Each question is reproduced and high-quality full-mark scores are written up clearly for each one. Great for preparing for exams, studying and so...

[Show more]

Preview 2 out of 9  pages

Document information

  • June 7, 2020
  • 9
  • 2012/2013
  • Exam (elaborations)
  • Questions & answers

Subjects

Written for

All documents for this subject (5)

1  review

review-writer-avatar

By: kush • 2 year ago

Seller

avatar-seller
londoneconomicstutors

Reviews received

Content preview

FOR MORE HIGH-QUALITY PAST PAPER MODEL ANSWERS, ONLINE TUTORING AND
ECONOMICS HELP, visit LondonEconomicsTutors.co.uk.
Discounted prices compared to all other websites

ECN214 Games and Strategies – 2013
Questions and Answers

Part A

Question 1




The Equilibrium Existence Theorem states that allowing for mixed strategies, any finite game
possesses at least one Nash equilibrium.

Question 2




a. They cannot get their most preferred alternative selected, as neither players 2 or 3 have that as
their most preferred alternative. Therefore, the best they can expect to achieve is their second-best,
which is policy b. Then they will choose player 2 who will choose b.

b. If alternative c is selected, then player 3 must have been made king. The player who would prefer
C to have been chosen the most, except for player 3, must be player 2. Therefore, player 2 must
have been the kingmaker.

c. They would choose someone who would choose them to be made king. This would allow them to
implement their most preferred option. They would then choose player 3 to be the kingmaker, who
would then choose player 1 to be made king.

, FOR MORE HIGH-QUALITY PAST PAPER MODEL ANSWERS, ONLINE TUTORING AND
ECONOMICS HELP, visit LondonEconomicsTutors.co.uk.
Discounted prices compared to all other websites

Question 3




Underlining the best responses in pure strategies:

l r
U -1, -1 5, 1
D 1, 5 4, 4

Therefore, the pure strategy Nash equilibria are (d, l) and (u, r).

To find the mixed strategy Nash equilibria, we set the probabilities such that the expected value of
each action are equal for both players.

𝐸[𝑢] = (−1)𝜌 + (1 − 𝜌)5 = 5 − 6𝜌
𝐸[𝑑] = (1)𝜌 + (1 − 𝜌)4 = 4 − 3𝜌
5 − 6𝜌 = 4 − 3𝜌
1 = 3𝜌
𝜌 = 1/3
𝐸[𝑙] = (−1)𝜋 + (1 − 𝜋)5 = 5 − 6𝜋
𝐸[𝑟] = (1)𝜋 + (1 − 𝜌)𝜋 = 4 − 3𝜋
5 − 6𝜋 = 4 − 3𝜋
𝜋 = 1/3
b) The “Nash reversion” strategy profile is one where if both players have always cooperated in the
past, then they choose to cooperate again (the “friendly regime”). In this case, this would involve
playing the action profile <d, r>. If not (the “hostile regime”), then they chose to defect in this
period, which in this case would be the action profile <u, l>.

The discounted total payoff of the “friendly regime” is:

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller londoneconomicstutors. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for £3.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

66184 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy revision notes and other study material for 15 years now

Start selling
£3.99
  • (1)
Add to cart
Added