Question: ( 8 - c ) ( 9 pts in total ) ) Answer the questions according to the following QM result on a 2 -

(8-c)(9 pts in total)) Answer the questions according to the following QM result on a 2-person-0-sum game:
Module/submodule: Game Theory
Problem title: Test Problem 5
Results ----------
Col Col
strat A strat B Row Mix
-------------------------------------------------
Row strat 16110.375
Row strat 2850.625
Column mix0.750.25
Value of game (to row)=7.25
(8-c.1)(5 pts) What is the equilibrium mixed strategy for row player in this game? Explain the meaning of the mixed strategy briefly (i.e., what does that strategy mean?)
(8-c.2)(2 pts) What is the equilibrium mixed strategy for the column player in this game? (no explanation is needed)
(8-c.3)(2 pts) What is the expected loss of the column player at equilibrium?
(8-d)(4 pts) If row player leaves his equilibrium strategy and uses a new strategy {0,1}, but column player stays with his equilibrium strategy, then
(8-d.1) what is the expected payoff of the row player?
(8-d.2) If column player has identified the unilateral strategy change of row player, what would column player do for his best?
(8-e)(2+3 pts) Suppose both players leave their equilibrium mixed strategies. The new strategy for row player is {1,0}. The new strategy for column player is {0.5,0.5}.
(8-e.1) What is the value of the game with the new strategies? (show your calculations)
(8-e.2) Which player is better off with these changes of strategies? Briefly explain.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!