1. Consider the following game in strategic or normal form.

	A2	B2	C2
A1	1,0	1,2	-2,1
B1	6,2	0,3	2,3
C1	2,2	-2,1	2,3

• Use the iterative elimination of strictly dominated strategies to reduce the game as much as possible.
• What is the set of rationalizable strategies for each player?
• What is/are Nash equilibrium(s) in this game?
• Explain the differences between cooperative and non-cooperative games. What are the fundamental hypotheses about the behavior of the persons in Game theory?

Answer rating: 100% (QA)

PART A In the game above player A has two strategies A1 and A2 Player B has two strategies B1 and B2 ... View the full answer