Game Theory, Spring Semester 2024

Plaksha University, Mohali

Assignment 2, Due Date: Midnight, 31st March, 2024.

Instructions: There are 5 questions in this assignment. Please read the questions carefully. We require you
to mention the names of the people you collaborate with.

Q1. [5 points] Write down the game table for the game Rock-Paper-Scissors where Rock beats Scissors,
Scissors beats Paper, and Paper beats Rock.
a. [1 points] Find the Best response for each player. Show your steps.
b. [4 points] Find all the mixed strategy Nash equilibriums without using the IESDS. Show your steps.

Q2. [3 points] Find all the subgame perfect equilibria.

Q3. [8 points] The following game is repeated infinitely:

P 1\P 2 U ncletonnies Southerncaf e

U ncletonnies (1, 1) (0, 0)
Southerncaf e (0, 0) (1, 1)

Abbreviations - Uncle tonnes- UT, Southern Cafe- SC, Play Opposite- POP, Play Same- PS, Play Other-
POT, Play Opposite to other- POPOT
Which of the following is SGPE? Give reasons.
(i) (U T, U T ),
(ii) (U T, SC),
(iii) (SC, U T ),
(iv) (SC, SC)
(v) (P OP, P OP ),
(vi) (P S, P S),
(vii) (P OT, P OT ),

1
(viii) (P OP OT, P OP OT )

Q4. [4 points] The following game is repeated infinitely:

P 1\P 2 R A
R (3, 3) (0, 2)
A (2, 0) (1, 1)

Which of the following is a SGPE and why?

(i) [1 point] (R, R),
(ii) [1 point] (R, A),
(iii) [1 point] (A, R),
(iv) [1 point] (A, A).

Q5. [10 points]

There is a probability p that the game continues the next round and a probability 1 − p that ends in the
first round.
a. What is a Grim trigger-like strategy for Arun and Ananya?
b. For what p’s (GrimTrigger , GrimTrigger ) is NE?
c. Is (GrimTrigger , GrimTrigger ) a SGPE? Show your steps.