ECOS2001 Intermediate Microeconomics Semester 1 2017

Tutorial 9: Simultaneous games

1. Iterated elimination of strictly dominated actions: Find NE(s) by iterated elimination of
strictly dominated actions.

A B C D E
a 5; 5 4; 11 3; 9 1; 14 0; 0
b 9; 4 8; 10 7; 4 8; 2 5; 9
c 10; 2 7; 9 1; 10 5; 4 3; 4
d 8; 8 3; 8 5; 2 7; 4 2; 1
e 9; 3 7; 5 3; 8 6; 9 3; 0

2. Iterated elimination of weakly dominated actions: Find NE(s) by iterated elimination of

weakly dominated actions. Comment on how orders matters.

A B C
a 1; 0 2; 1 0; 1
b 1; 2 5; 1 0; 0

3. Matching pennies: textbook question 12.2 (p.218)

4. Hawk and dove: textbook question 12.3 (p.219)

5. Stag hunt: textbook question 12.4 (p.219)

6. Public-good provision: Consider the public-good provision game we discussed during the
lecture:
c n
c n c n
c 1; 1; 1 1; 2; 1 c 1; 1; 2 1; 0; 0
n 2; 1; 1 0; 0; 1 h 0; 1; 0 0; 0; 0

(a) Find all the Nash equilibria in pure strategies.

(b) Find the symmetric mixed-strategy NE.

7. Entry game: textbook question 12.7 part (a) (p.221)