Anusha and Bill went to the Royal Easter show where each of them bought identical toys....

 

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Anusha and Bill went to the Royal Easter show where each of them bought identical toys. Both lost their toys on their way back home. Their parents decided to reimburse them. They do not know the exact price, but they know the price is either $2, or $3, or $4. They proposed the following scheme. • Anusha should write either 2, or 3, or 4 as the price, and hand it to her parents. Bill should do the same (without consulting Anusha). ● If Anusha writes på and Bill writes pb, Anusha gets på and Bill gets p, as long as their written numbers are identical or differ by 1, i.e., Ipa- Pbl = 0 or 1. ● Else, if |pa - Pol = 2, o Anusha gets pb- 1 while Bill gets pa + 1 when pa > Pb. o Anusha gets p + 1 while Bill gets pa - 1 when pa < Pb. o Example: Suppose Anusha writes 2 and Bill writes 4, then |pa - pbl = 2; Anusha would get p + 1 = 4 + 1 = 5 while Bill will get pa - 1 = 2 - 1 = 1. (a) [3 marks] write down a clearly labelled 3 X 3 payoff matrix associated with the game where: Anusha and Bill are two players; each chooses one of the three prices: 2, 3, or 4. (You can ignore the dollar sign). Anusha is the row player and Bill is the column player. Anusha and Bill went to the Royal Easter show where each of them bought identical toys. Both lost their toys on their way back home. Their parents decided to reimburse them. They do not know the exact price, but they know the price is either $2, or $3, or $4. They proposed the following scheme. • Anusha should write either 2, or 3, or 4 as the price, and hand it to her parents. Bill should do the same (without consulting Anusha). ● If Anusha writes på and Bill writes pb, Anusha gets på and Bill gets p, as long as their written numbers are identical or differ by 1, i.e., Ipa- Pbl = 0 or 1. ● Else, if |pa - Pol = 2, o Anusha gets pb- 1 while Bill gets pa + 1 when pa > Pb. o Anusha gets p + 1 while Bill gets pa - 1 when pa < Pb. o Example: Suppose Anusha writes 2 and Bill writes 4, then |pa - pbl = 2; Anusha would get p + 1 = 4 + 1 = 5 while Bill will get pa - 1 = 2 - 1 = 1. (a) [3 marks] write down a clearly labelled 3 X 3 payoff matrix associated with the game where: Anusha and Bill are two players; each chooses one of the three prices: 2, 3, or 4. (You can ignore the dollar sign). Anusha is the row player and Bill is the column player.

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Let me solve this stepbystep a Payoff matrix We need to consider all possible combinations of Anusha ... View the full answer