MODULE 3 EXERCISES

1.) SIMULTANEOUS LEGISLATOR’S VOTES

A votes for a raise

C votes for a raise C votes against a raise C abstain
B votes for a raise 1,1,1 1,1,2 1 , 1 , 0.8
B votes against a raise 1,2,1 -1 , 0, 0 -1 , 0 , 0.8
B abstain 1 , 1.8 , 1 -1, 0.8, 0 -1 , -0.8 , -0.8

A votes for against a raise

C votes for a raise C votes against a raise C abstain
B votes for a raise 2,1,1 0 , -1 , 0 0 , -1 , -0.8
B votes against a raise 0 , 0 , -1 0 , 0, 0 0 , 0 , -0.8
B abstain 0 , -0.8 , -1 0 , -0.8 , 0 -1 , -0.8 , -0.8

A abstain
C votes for a raise C votes against a raise C abstain
B votes for a raise -0.8 , 1 , 1 -0.8 , -1 , 0 -0.8 , -1 , -0.8
B votes against a raise -0.8 , 0 , -1 -0.8 , 0, 0 -0.8 , 0 , -0.8
B abstain -0.8 , -0.8 , -1 -0.8 , -0.8 , 0 -0.8 , -0.8 , -0.8

2.) GUESS THE AVERAGE GAME

BETH
1 2 3 4
A 1 1,1 1,2 1,3 1,4
(TIE) (Ann wins) (Ann wins) (Ann wins)
N 2 2,1
(Beth wins)
2,2
(TIE)
2,3
(Ann wins)
2,4
(Ann wins)
N 3 3,1
(Beth wins)
3,2
(Beth wins)
3,3
(TIE)
3,4
(Ann wins)
4 4,1 4,2 4,3 4,4
(Beth wins) (Beth wins) (Beth wins) (TIE)
DECISION RULE: Based on the payoff bimatrix, the game has Nash Equilibrium, since both Ann and Beth
will have the same number of wins.

3.) TWO BARS

Bar 2 2$ 4$ 5$
Bar 1
2$ 10 , 10 14 , 12 14 , 15

4$ 12 , 14 20 , 20 28 , 15

5$ 15 , 14 15 , 28 25 , 25

Bar 2 4$ 5$
Bar 1

4$ 20 , 20 28 , 15

5$ 15 , 28 25 , 25

Since in this situation, 6,000 tourists and 4,000 natives.

4.) SCHEDULING A DINNER PARTY

Beth Friday Saturday

Ann
Friday 10 , 10 4,5

Saturday 5,4 10 , 10

5.) SELECTING CLASS

Adam selects ITA100

Cindy selects ITA100 Cindy selects FRE100
Bill selects ITA100 2,0,0 1 , 1 , -1
Bill selects FRE100 1 , -1 , 1 0 ,1 , 1
 Adam selects FRE100
Cindy selects ITA100 Cindy selects FRE100
Bill selects ITA100 0,1,1 1 , 0 , -1
Bill selects FRE100 1 , -1 , 0 2,0,0

6.) DEADLOCK

2nd Player Cooperate Defect

1st Player

Cooperate 1,1 0,3

Defect 3,0 1,1

7.) STAG HUNT

2nd Player
1st Player Cooperate Hawk

Cooperate 2,2 3, 1

Hawk 1,3 0,0

8.) CHICKEN

2nd Player
1st Player Dove Hawk

Dove 2,2 3, 1

Hawk 1,3 0,0

9.) TWO CARS INTERSECTION

Car B Proceed Yield

Car A

Proceed 100 , 1000 5,5

Yield 5,5 10 , 10

Maximin move for both cars were to yield.

Dominating move for both of them is also to yield.

Their best response is to yield also.

10.) THREE CARS INTERSECTING

Car A proceeds Car A yields

Car B proceeds 100 , 1000 0,5

Car B yields 5,0 10 , 10

Car A proceeds Car A yields

Car C proceeds 5,5 5,5

 Car C yields 5,5 10 , 10

Car C proceeds Car C yields

Car B proceeds 100 , 1000 5,5

Car B yields 5,5 10 , 10