Introduction to Game Theory

Instructor: Chaikal Nuryakin, PhD

Homework 1

Due on October 2nd, 2023 at 21:59 am. Upload on EMAS.

If you late or fail to upload at the specific date and time, then your homework-1 score would be
55 at maximum.

Answer all the questions. Process is as important as result.

Consider the following games:

Player 2
L C R
Player 1

U 5 , 2 2 , 0 2 , 2

M 4 , 1 2 , 2 1 , 0

D 3 , -1 0 , 0 2 , 1

For the static games whose payoff matrices are given below, answer the following questions:
a. Find all pure NE!
b. Are the NEs pareto efficient? Explain!
c. Find All pareto efficient outcomes!
d. Is there any dominant strategy? Explain
e. Is there any dominated strategy? Explain
f. Can the game solve by Dominant Strategy Equilibrium?
g. Can the game be solved by the iterated elimination of strictly dominated strategies? If
yes, describe the elimination process. If not, explain why.
h. Can the game be solved by the iterated elimination of weakly dominated strategies? If
yes, describe the elimination process. If not, explain why.
i. What is the difference between the solution concept in (g), and (h).
j. Can the game be solved by rationalizability? If yes, describe the elimination process. If
not, explain why.
k. What is the difference between the solution concept in (a) and (j).