HOMEWORK 07: GAME THEORY ASSIGNMENT 2 Question 1. For each of the following games, identify the best response functions of Ralph and Lauren, any dominant strategies that exist, which pairs of strategies yield maximum social welfare, and any Nash Equilibria. Lauren Lauren X Y Q1)a) Ralph X Y A 2, 3 1 , 1 Q1)b) Ralph A 2, 5 1 , 5 B 0, 1 2, - 1 B -1, 2 0, 1 Lauren Lauren XY Q1)c) Ralph A 1, 0 2, 3 Q1)d) Ralph A 3, 4 1, 3 0, 0 B 2 , 1 4 , 2 B 2, 1 3 , 1 2 , 3 BR(X) = Dominant Strategies for Ralph: BR( Y) = Dominant Strategies for Lauren: . . . . Q1)a) BL(A) = Social Welfare Maximum Strategies: BL(B) = Nash Equilibrium: BR(X) = Dominant Strategies for Ralph: BR(Y) = Dominant Strategies for Lauren: Q1) b) BL(A) = Social Welfare Maximum Strategies: BL(B) = . . . Nash Equilibrium: BR(X) = Dominant Strategies for Ralph: BR(Y) = Dominant Strategies for Lauren: Q1)c) BL(A) = Social Welfare Maximum Strategies: BL(B) = Nash Equilibrium: Dominant Strategies for Ralph: BR( X) = ... Dominant Strategies for Lauren: BR ( Y) = ... Social Welfare Maximum Strategies: ......... Q1)d) BR(Z) = Nash Equilibrium: ... ... ..... BL( A) = ....... BL(B) =