Determine whether each of the following statements is true or false and justify your answer. (1) The set of rationalizable action profiles of a strategic game must contain all of its Nash equilibria. (2) In a first-price auction, bidding one’s valuation weakly dominates bidding any higher real number.

Determine whether each of the following statements is true or false and justify your answer. (1) The set of rationalizable action profiles of a strategic game must contain all of its Nash equilibria. (2) In a first-price auction, bidding one’s valuation weakly dominates bidding any higher real number.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.1P

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