Consider the following signalling game.

Q16

Solve the attahment.

The following game is played by 2 players         Adam Jack   Left Middle Right Up 1,2 3,5 2,1 Middle 0,4 2,1 3,0 Down -1,1 4,3 0,2   Determine all dominant strategies for Adam and Jack.  Solve the equilibrium for this game.

The bimatrix represents a simultaneous move game between Rowena and Colin. Rowena's payoff is the left number in each cell. ROWENA Up Down 0.25Left +0.75Right 0.65Left +0.35Right Find Colin's mixed strategy that makes Rowena indifferent between a pure strategy of playing Up and a pure strategy of playing Down. 0.5Left +0.5Right Left 1,16 2,20 0.45Left +0.55Right COLIN Right 4,6 3,40

am. 116.

Consider the following situation: five individuals are participating in an auction for an old bicycle used by a famous cyclist. The table below provides the bidders' valuations of the cycle. The auctioneer starts the bid at an offer price far above the bidders' values and lowers the price in increments until one of the bidders accepts the offer.   Bidder Value ($) Roberto 750 Claudia 700 Mario 650 Bradley 600 Michelle 550   What is the optimal strategy of each player in this case? Who will win the auction if each bidder places his or her optimal bid? If Claudia wins the auction, how much surplus will she earn?

I hope you can draw a picture and analyze it, thank you.

What is game theory? How does it relate to strategic decision making?  What do the phrases dominant strategy and Nash Equilibrium mean as they apply to game theory?

Find a separating perfect Bayes–Nash equilibrium for the figure below.