Construct player l's best response diagram for all mixed and full strategies of their opponent. Player...
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Construct player l's best response diagram for all mixed and full strategies of their opponent. Player 1 Player 2 LCR T 2,0 6,1 3,2 M 6,4 2,2 1,3 B 1.3 4,2 5,0 • Player 1 assigns the following probability to each of the actions of player 2: p= P(L), q= P(C), and 1-p-q=P(R). • Plot those comparisons on a graph with p = P(L) on the x-axis and q = P(C) on the y-axis. Note that this graph implicitly includes P(R) since P(R) =1-p-q. • Shade and label areas where a given strategy is a best response. That is shade the probability combinations of p, q where the expected utility is highest for a given choice. You may also label choices which a player is indifferent between two choices. For what belief about player 2's strategies will player 1 be content with randomizing with equal probability over his own strategies. Construct player l's best response diagram for all mixed and full strategies of their opponent. Player 1 Player 2 LCR T 2,0 6,1 3,2 M 6,4 2,2 1,3 B 1.3 4,2 5,0 • Player 1 assigns the following probability to each of the actions of player 2: p= P(L), q= P(C), and 1-p-q=P(R). • Plot those comparisons on a graph with p = P(L) on the x-axis and q = P(C) on the y-axis. Note that this graph implicitly includes P(R) since P(R) =1-p-q. • Shade and label areas where a given strategy is a best response. That is shade the probability combinations of p, q where the expected utility is highest for a given choice. You may also label choices which a player is indifferent between two choices. For what belief about player 2's strategies will player 1 be content with randomizing with equal probability over his own strategies.
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To construct Player 1s best response diagram we need to determine the expected utility for each acti... View the full answer
Related Book For
Business Statistics in Practice
ISBN: 978-0077404741
6th edition
Authors: Bruce Bowerman, Richard O'Connell
Posted Date:
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