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EC 246: Decisions & Games

This document contains two problems from an assignment on decisions and games. Problem 1 asks to determine all Nash equilibria of an extended matching pennies game and whether the equilibria have distinct outcomes and payoffs. Problem 2 asks to find the unique Nash equilibrium of another extended matching pennies game and explain why no other equilibrium exists.

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Parmesh Gupta
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41 views

EC 246: Decisions & Games

This document contains two problems from an assignment on decisions and games. Problem 1 asks to determine all Nash equilibria of an extended matching pennies game and whether the equilibria have distinct outcomes and payoffs. Problem 2 asks to find the unique Nash equilibrium of another extended matching pennies game and explain why no other equilibrium exists.

Uploaded by

Parmesh Gupta
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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EC 246: Decisions & Games

Problem Set II

Problem 1: Consider the following “Extended Matching Pennies Game – 1” which is a


complete-information simultaneous-move game:
Column Player
Heads Tails Covered
Row Player Heads 10, 00 00, 10 06, 06
Tails 00, 10 10, 00 06, 06
. Covered 06, 06 06, 06 06, 06

Determine all (pure-strategy and mixed-strategy) Nash equilibria of the game. Do all the
Nash equilibria have distinct outcomes, or do some/all of them have the same outcomes?
Do all the Nash equilibria have distinct payoffs for the two players, or do some/all of them
have the same payoffs for the two players?

Problem 2: Consider the following “Extended Matching Pennies Game – 2” which is a


complete-information simultaneous-move game:
Column Player
Heads Tails
Row Player Heads 10, 00 00, 10
Tails 00, 10 10, 00
. Covered 06, 05 06, 07

There exists a unique Nash equilibrium of the game. Can you find it? What arguments will
you use to establish that there exists no other Nash equilibrium of this game?

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