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Game Theory Mid sem pyq

The document is an examination paper for the subject 'Game Theory in Economics' at the National Institute of Technology Rourkela for the academic session 2023-2024. It includes questions on framing normal form games, analyzing oligopoly markets, defining game theory, and discussing various game-like situations. The exam consists of two sections, with specific questions requiring detailed answers and short notes.

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Divyansh Tripathi
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3 views

Game Theory Mid sem pyq

The document is an examination paper for the subject 'Game Theory in Economics' at the National Institute of Technology Rourkela for the academic session 2023-2024. It includes questions on framing normal form games, analyzing oligopoly markets, defining game theory, and discussing various game-like situations. The exam consists of two sections, with specific questions requiring detailed answers and short notes.

Uploaded by

Divyansh Tripathi
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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NATIONAL INSTITUTE OF TECHNOLOGY ROURKELA

MID-SEMESTER EXAMINATION
ACADEMIC SESSION: 2023–2024 (SPRING)

Subject Code: 1350 Subject Name: Game Theory in Economics Dept. Code: HS
No. of page: 1 Full Marks: 30 Duration: 2 Hours
Figures at the right-hand margin indicate marks.
Question Marks
No.
Section A: Answer any TWO of the following questions. 2X10=20

Frame a two-player, three-strategy choice normal form game for the following cases:
1.
a) A single strategy combination for both players having DSS, IEDS, and NE.
b) A single strategy combination for both players having IEDS, and NE but not
qualified for DSS.
c) A single strategy combination for both players having unique NE but neither
qualified for DSS nor IEDS.
d) Two strategy combinations for both players having multiple NE but neither
qualified for DSS nor IEDS.

Note: DSS = Dominant Strategy Solution; IEDS = Iterated Elimination of Dominated


Strategy Solution; NE = Nash Equilibrium (Equilibria)

Given the market demand and individual cost functions of a two-player (1 and 2)
2.
Oligopoly Market, prove that
a) Cartel solution is always better for producers than competing for a higher quantity
of output production (Note: comparison must be in line with the equilibrium level
of Price, Quantity, and Profit)
b) The Non-cartel solution is also Nash Equilibrium.

Market Demand Function: P = A – BQ (where Q = Q1+Q2)


Cost Function: TC1 = c1+d1Q1 and TC2 = c2+d2Q2

Define Game Theory and discuss its evolution as a discipline. Give three examples of
3.
game-like situations from your everyday life. Be sure that each example must be in line
with the rules of the game.

Section B: Answer any TWO of the following questions. 2X5=10


4. Let there be two piles of matches and two players. The game starts with player 1
and thereafter the players take turns. Each player is required to remove some number
of matches from either pile. Each player is required to remove some number of
matches if either pile has matches remaining, and he can only remove matches from
one pile at a time. Whichever player removes the last match wins the game. If the
initial configuration is (2,1), that means, two matches in one pile and a single match
in the other pile, then frame the game both in normal and game tree forms.

5. Write Short notes on


a) Prisoner’s Dilemma
b) Voting Game

6. Distinguish between
(a) Simultaneous and Sequential Form Game
(b) Dominant and Dominated Strategy
…….. ALL THE BEST ……

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