Pearson eText Microeconomics -- Access Card
2nd Edition
ISBN: 9780136849513
Author: Acemoglu, Daron, Laibson, David, List, John
Publisher: PEARSON
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Question
Chapter 13, Problem 1Q
To determine
Meaning of dominant-strategy equilibrium.
Expert Solution & Answer
Explanation of Solution
Dominant strategy refers to a player choosing the same alternative regardless of what the other player chooses.
Dominant strategy equilibrium occurs when all the players in a game choose to act on a dominant strategy.
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Chapter 13 Solutions
Pearson eText Microeconomics -- Access Card
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- What is the difference between a cooperative and a noncooperative game? Give an example of each.arrow_forwardProvide an example of a matrix game for which there is a weakly dominant strategy equilibrium, as well as another Nash equilibrium. You can make a natrix in word and copy-paste that in the box given for answer. Alternatively, you can write the matrix in the box.arrow_forwardCan a strategy be dominant for one player in a Nash equilibriumarrow_forward
- Use the following normal-form game to answer the following questions. a. For what values of x is strategy D (strictly) dominant for player 2? b. For what values of x is strategy B (strictly) dominant for player 1? c. For what values of x is (B, D) the only Nash equilibrium of the game?arrow_forwardFill in the chart attached and answer the following questions: a) Bert's dominant strategy is to: (pick the correct answer below ) - no dominant strategy - fish for 20 hours per week -fish for 40 hours per week. b) Ernie's dominant strategy is to: ( pick the correct answer below) - no dominant strategy - fish for 20 hours per week -fish for 40 hours per week. c) Is there a Nash Equilibrium? ( pick the correct answer below) - No - Yes, both fish for 20 hours per week - Yes, one fisher for 40 and the other for 20. - Yes both fish for 30 hours per week. d) Is there an incentive for Bert and Ernie to collude? Why or why not?arrow_forwardThe following is a static game: Convert this game into dynamic form game. Find the Nash equilibrium and subgame perfect Nash equilibrium of this game. If you consider this game as dynamic then what kind of dynamic game is this.arrow_forward
- Explain the meaning of a Nash Equilibrium. How does it differ from and equilibrium in dominant strategies?arrow_forwardHow expected Nash Equilibrium would be achieved in case of game with no Nash Equilibrium?arrow_forwardhow do you describe the pure Nash equilibrium of a game, listing all equilibrium conditions.arrow_forward
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