Scribd
Upload
478 views3 pages

Game Theory Exercises for Students

This document provides an overview of a game theory practice assignment that includes several normal form and extensive form games. Students are asked to find all Nash equilibria and subgame perfect Nash equilibria for each game. The solutions are provided on the last page of the document.

Uploaded by

vuduyduc
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
478 views3 pages

Game Theory Exercises for Students

This document provides an overview of a game theory practice assignment that includes several normal form and extensive form games. Students are asked to find all Nash equilibria and subgame perfect Nash equilibria for each game. The solutions are provided on the last page of the document.

Uploaded by

vuduyduc
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

EC 101: Game Theory Practice

Nick Saponara, Boston University

Find all Nash equilibria of the following games, and the Subgame Perfect Nash equilibria of the extensive form games. Answers are on the last page. Feel free to ask questions at the review or via email. For
each normal form game, recall that Player 1s strategies are on the left, and Player 2s are on top.
1.
U
D

L
2, 4
3, 1

R
1, 3
5, 3

2.
U
D

L
4, 1
2, 1

U
D

L
2, 2
3, 1

R
0, 3
4, 0

3.
R
3, 3
1, 0

4.
U
D

L
2, 4
3, 1

R
6, 3
5, 3

5.
U
D

L
1, 4
3, 1

R
1, 3
5,

(a) Which payoff in the blank would make (D, R) the unique Nash equilbrium?
(b) Which payoff would make both (D, R) and (D, L) Nash equilibria?

6. The following game is the normal form of a dynamic (extensive form) game in which Player 1 moves
first and can choose L or R. Player 2 observes this and can then choose A or B.
AA
2, 4
5, 0

L
R

AB
2, 4
2, 1

BA
4, 1
5, 0

BB
4, 1
2, 1

(a) Find all Nash equilibria of the normal form game.


(b) Draw the game tree that represents the extensive form.
(c) Find all the Subgame Perfect Nash equilibria.
7.

P1

P2

P2

(10, 40)

(0, 0)

(20, 20)

(40, 10)

8.

P1

P2

(5, 3)

P2

(0, 4)

(1, 2)

(4, 7)

S OLUTIONS
1. (D, R)
2. (D, L)
3. (D, L) and (U , R)
4. There are no pure strategy Nash equilibria. Recall matching pennies in class!
5.

(a) Any number strictly larger than 1.


(b) 1.

6.

(a) (L, AB) and (R, AB).


(b)
P1

P2

(2, 4)

P2

(4, 1)

(c) (L, AB) and (R, AB) are subgame perfect.


7. (R, AA) is the only subgame perfect Nash equilibrium.
8. (R, BB) is the only subgame perfect Nash equilibrium.

(5, 0)

(2, 1)

You might also like