Game Theory and Its Applications

Group Assignment: Due Date October 13, 2015

Location Game There are two department stores, S-Stores and Super Market. They have to
choose a location for its one store in the N Area. The three strategies for the owners are to
locate in North, South and Central Zones of the Area. The Payoffs are as shown in the table
given below.
Does this game have Nash equilibria? What strategies, if so? Which strategies would you
predict that S-Stores and Super Market would choose? What would you say about the
relative importance of congestion in the location decisions of the firms.

70,60
110,70

S-Stores
South
Zone
60,120
40,40

120,80

110,120

North Zone

Super
Market

North Zone
South
Zone
Central
Zone

Central
Zone
80,100
120,110
50,50

Rock, Paper, Scissors

Two simultaneously choose a symbol for rock, papers or scissors. The rules for winning and
losing are as follows:

Paper wins over rock

Rock wins over scissors
Scissors wins over paper

The payoff table is shown. Discuss the game from the point of view of noncooperative
solutions. Does it have a dominant strategy equilibrium? Does it have Nash equilibria? What
strategies, if so? How do you think the two of you will try to play the game?
A game is cooperative if the players can communicate and arrange bidding contracts;
otherwise, it is noncooperative.

Player 2

Paper
Rock
Scissors

Paper
0,0
-1,1
1,-1

Player 1
Rock
1,-1
0,0
-1,1

Scissors
-1,1
1,-1
0,0

Groups:
Group 1

Anjani

Abhilash

Group 6

Aswathy

B. R. Rajan

Group 2

Michael

Susan

Group 7

A. Avinash

Group 3

Georg
Goetz
Promod A.
Raj

Shahenaaz

Group 8

Dennis

B.
Rajarajan
Quiterie

Thomas

Group 9

Kasturi

H. Sridhar

Group 4

Group 5
Group 11

E. Mark
Linekar
Ninan Alex

Nilaeshh
Charles
Guth

Group
10

Papitha

Vie Thibaud