Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
SOLVED EXERCISES
S1. False. A player’s equilibrium mixture is devised in order to keep her opponent indifferent
among all of her (the opponent’s) possible mixed strategies; thus, a player’s equilibrium mixture
yields the opponent the same expected payoff against each of the player’s pure strategies. Note
that the statement will be true for zero-sum games, because when your opponent is indifferent in
such a game, it must also be true that you are indifferent as well.
S2 (a) The game most resembles an assurance game because the two Nash equiibria
occur when both players play the same move. In an assurance game, both players prefer to make
the same move, but there is also a preferred Nash equilibrium with higher payoffs for both
players. In this game, (Risky, Risky) is the preferred equilibrium because it has higher payoffs,
but there is a chance that the players will play the worse Nash equilibrium with lower payoffs.
Even worse, the players might not play an equilibrium at all. Without convergence of
expectations, these results can occur, and this is characteristic of an assurance game.
(b) The two pure-strategy Nash equilibria for this game are (Risky, Risky) and (Safe,
Safe).
S3. (a) There is no pure-strategy Nash equilibrium here, hence the search for an
equilibrium in mixed strategies. Row’s p-mix (probability p on Up) must keep Column indifferent
and so must satisfy 16p + 20(1 – p) = 6p + 40(1 – p); this yields p = 2/3 = 0.67 and (1 – p) = 0.33.
Similarly, Column’s q-mix (probability q on Left) must keep Row indifferent and so must satisfy
q + 4 (1 – q) = 2q + 3(1 – q); the correct q here is 0.5.
(b) Row’s expected payoff is 2.5. Column’s expected payoff = 17.33.
(c) Joint payoffs are larger when Row plays Down, but the highest possible payoff to
Row occurs when Row plays Up. Thus, in order to have a chance of getting 4, Row must play Up
occasionally. If the players could reach an agreement always to play Down and Right, both would
get higher expected payoffs than in the mixed-strategy equilibrium. This might be possible with
repetition of the game or if guidelines for social conduct were such that players gravitated toward
S4. The two pure-strategy Nash equilibria are (Don’t Help, Help) and (Help, Don’t Help).
The mixed-strategy Nash equilibrium has the following equilibrium mixtures:
2p + 2(1 – p) = 3p + 0 p = 2/3
2q + 2(1 – q) = 3q + 0 q = 2/3
That is, each player helps two-thirds of the time and doesn’t help one-third of the time.
S5. (a) Evert will play DL the same as before, because her p-mix depends upon
Navratilova’s payoffs.
(b) 70p + 10(1 – p) = 40p + 80(1 – p) p = 7/10
70q + 40(1 – q)= 10q + 80(1 – q) q = 2/5
So the mixed-strategy Nash equilibrium occurs when Evert plays 7/10(DL) + 3/10(CC) and
Navratilova plays 2/5(DL) + 3/5(CC).
Evert’s expected payoff is 70(2/5) + 40(1 – 2/5) = 52.
(c) Compared with the previous game, Evert plays DL with the same proportion,
whereas Navratilova plays DL less, going from 3/5 to 2/5. Navratilova’s q-mix changes because
her mix is dependent on Evert’s payoffs. The changes in Evert’s payoffs lead to a change in
Navratilova’s q-mix. On the other hand, Evert’s p-mix doesn’t change because Navratilova’s
payoffs have remained unchanged.
S7. (a) See the table below. Best responses are underlined. Note that there is no cell
where both players are mutually best responding:
COLUMN
Left Right
Up 2, 1 – 1, 4
ROW
Down 0, 3 3, 2
S10. (a) The home team must play the 20-yard play if they have 20 yards to go for fourth
down. The rival’s team best-response would be to anticipate the 20-yard play.
(b) The home team’s expected payoff when there are 20 yards to go on fourth down
is (0.5)(1) + (0.5)(0) = 1/2.
(c) 0.2p + 0(1 – p) = 0p + 0.5(1 – p) p = 5/7
0.8q + 1(1 – q) = q + 0.5(1 – q) q = 5/7
That is, the mixed-strategy Nash equilibrium is:
Home Team plays 5/7(10-yard play) + 2/7(20-yard play)
Rival Team plays 5/7(Anticipate 10-yard play) + 2/7(Anticipate 20-yard play)
(d) The home team’s expected payoff is: (5/7)(.8) + (2/7)(1) = 6/7.
(e) With probability 0.5, the home team’s 20-yard play will succeed when a 20-yard play
is anticipated, resulting in payoffs of (1, 0). However, with probability 0.5, the 20-yard play will
fail, leaving the home team in the situation described in part (a): fourth down with 20 yards to go.
In part (b) we saw that the expected payoff to the home team in this situation was 1/2. The
expected payoff to the home team from using the 20-yard play on third down is the weighted
average of the outcomes when it succeeds and when it fails:
0.5(1) + 0.5(1/2) = 3/4.
(f) With probability 0.8, a 10-yard play succeeds when a 10-yard play is anticipated, and
with probability 0.2 it fails. When it succeeds the home team is left with 10 yards to go on fourth
down, which, as seen in part (d), yields an expected payoff of 6/7 to the home team. When it fails,
the home team is left with 20 yards to go on fourth down, which, as seen in part (b), yields an
S12. (a) Row has a dominant strategy if C > A; Column has a dominant strategy if C > B.