Problems from Chapter 3

Find Strategies for Simon

• Mugger is a puny little guy • But you don’t want to mess with him if he’s armed . Imagine that you are Simon • You are really tough and like to fight.

) • A) 2 • B) 3 • C) 4 • D) 8 . The Mugger Problem • How many different strategies are there for Simon? (Remember a strategy specifies what you will do at every information set.

. • If Simon can act differently depending on whether he sees a gun or not. resist and not resist. he has 4 strategies. you are telling Simon that he has to do the same thing whether he sees a gun or not. • If you say there are only two strategies. Why does it matter.

6 6.3 Simon’s Strategy x/y means Do x if you see a gun.5 4.2 3.5 Hide Gun 3.3 2.4 3. Do y if you don’t see a gun.6 6. . Strategic form Simon Resist/Resist Resist/Give Give/Resist Give/Give Show Gun 3.4 Mugger No Gun 2.2 4.2 5.2 5.

The Stop Light Game Light • Red Green Pedestrian Pedestrian Walk Wait Walk Wait .

Strategies in Stop Light Game • How many strategies are there for Pedestrian? • What are they? .

Stop light game What strategy does this show? .

What strategy does this show? .

What strategy does this show? .

Stop light game What strategy does this show? .

What strategy does this show? .

What if you can’t see the light? Light Red Green Walk Wait Walk Wait .

are there any strategies that won’t be played? Figure PR3. and . Problem 4 A) If both are rational. Strategies.4 Harrington: Games.

4 Harrington: Games. Strategies. Problem 4 If both are rational. what can be eliminated? Figure PR3. and . Player 1 won’t play a and 2 won’t play z B) If each knows that the other is rational.

What if Player 2 knows that Player 1 knows that Player 2 is rational? . If 2 won’t play z. he knows that 2 won’t play z. payer 1 is always better off with b than with c. Problem 4 If Player 1 knows that 2 is rational. So he won’t play c.

5 Harrington: Games. and . Strategies. neither will play strictly dominated strategy What strategies are strictly dominated? Figure PR3. Problem 5 a) If both are rational.

neither will play stricltly dominated strategy What strategies are dominated? Figure PR3. Problem 5 a) If both are rational.5 Harrington: Games. Strategies. and .

and . Are there any strictly dominated strategies now? Figure PR3. Strategies. Problem 5 a) If each believes other is rational . each knows that z and d are not possible. Reduced game is above.5 Harrington: Games.