ECON 233 – Introduction to Game Theory

Assignment 1

Assignment Due: 4 PM Monday 14th October 2019.

Section A (90 marks)

Chapter 4- 1(parts d, g and h), 2, 3(parts c and d), 4,

Chapter 6 – 1 (all parts), 2(parts b and d), 4(parts b and d), 5(parts b and d), 7

Chapter 7 – 1 (all parts), 2, 3, 4

Chapter 8 – 1, 2, 3

Chapter 9 – 1, 2, 3, 7, 8

Update

Chapter 6 – 3, 6, 10

Chapter 7 – 9

Chapter 8 – 5, 7

Chapter 9 – 4, 5, 6, 9

Chapter 10 – 2, 7

Chapter 11 – 7, 10

Chapter 14 – 3, 5, 6

Chapter 15 – 1 (b and c), 2a, 4,9

Section B (10 marks)
1. Recall the setup of the Median Voter Theorem from class.
a. Explain why the strategies that survive IEDS are not Strictly Dominant Strategies in the
unreduced game.
b. This time assume that there at 5 positions that each of the two candidates can take,
from 1 to 5. Further assume that there are a total of 50 voters, and each candidate is
looking to maximise the number of voters (s)he can attract.
Assume voters are distributed as follows.

Position No. of Voters

1 2
2 8
3 10
4 16
5 14

Is this game dominance solvable? What are the rationalizable strategies for each candidate?
Does your result make sense?