Game Theorization

Collaborate with your teammates in order to answer each of the following items
from the textbook. Show all necessary solutions.

1. ITEM #6 ON PAGE 219

Prisoners have been trying to escape from a jail. Most of the attempts
involve climbing over perimeter walls or digging from under their cells. To
discourage more attempts, the warden can either post guards on the walls
or conduct regular inspections of cells, but not both.

PLAYERS STRATEGIES

ESCAPE by climbing over perimeter walls

PRISONERS
ESCAPE by digging from under their cells

DISCOURAGES by posting guards on the walls

WARDEN
DISCOURAGES by conducting regular inspections of cells

a. Express this game in normal form:

NORMAL WARDEN POSTS WARDEN CONDUCTS
FORM GUARDS INSPECTIONS
PRISONERS CLIMB
-16, 16 16, -16
OVER
PRISONERS
16, -16 -16, 16
DIG UNDER CELLS

CLIMB OVER & POSTS GUARDS = -16, 16

Prisoners FAIL to escape & Warden SUCCESSFULLY discourages them

DIG UNDER CELLS & CONDUCTS INSPECTIONS = -16, 16

Prisoners FAIL to escape & Warden SUCCESSFULLY discourages them

CLIMB OVER & CONDUCTS INSPECTIONS = 16, -16

Prisoners SUCCESSFULLY escape & Warden FAILS to discourage them

DIG UNDER CELLS & POSTS GUARDS = 16, -16

Prisoners SUCCESSFULY escape & Warden FAILS to discourage them
b. Express this game in extensive form, assuming that a prisoner and the warden
make their decisions at the same time.

c. Express this game in extensive form, assuming that the warden makes his/her
decision first and the prisoner knows the warden's decision when he/she chooses
the strategy.

2. ITEM #9 ON PAGE 219

Consider the following payoff table for a two-player game:
 X Y Z
X 60, 50 50, 110 70, 90
Y 100, 60 30, 30 110, 100
Z 110, 70 100, 110 40, 40

a. Does this game have Nash equilibria? If so, what strategies?

-Suppose player 2 chooses X, then best strategy for player 1 would be Z

-Suppose player 2 option Y, then the best strategy for player 1 would be Z
-Suppose player 2 option Z, then the best strategy for player 1 would be Y
-Suppose player 1 option X, then the best strategy for player 2 would be Y
-Suppose player 1 option Y, then the best strategy for player 2 would be Z
-Suppose player 1 option Z, then the best strategy for player 2 would be Y

Therefore Nash Equilibria on playing strategies for (Z,Y) and (Y,Z). Player A to
player 1 and player B to player .

b. Which strategies do you predict Player A and Player B will choose?

Player A for strategy Z as if player B plays X or Y, it would be excellent for player
A. Like player B for strategy Y as if player A plays X or Z, it would be excellent for
player B.

3. ITEMS #11-12 ON PAGE 220 ****NOTE: Don't forget to answer item #12.

#11 The following payoff table involves two players, each of whom has
three possible moves:
L M N
L 30, 15 45, 35 55, 25
M 25, 35 20, 20 30, 50
N 15, 35 35, 40 15, 15

a. Are there any dominant strategies in the game?

 Regardless of the other player's decision, we must compare the payoffs for each
player's movements in order to identify any dominant strategy.

FOR PLAYER A

If player B chooses L : 30>25>15>

If player B chooses M : 35>15>35
If player B chooses N: 35>30>25

Because Player B's decision determines Player A best course of action, Player A
lacks a dominant strategy.

FOR PLAYER B
If player A chooses L : 45>20>35
If player A chooses M : 35>50>25
If player A chooses N : 40>15>15

Player B does not have a dominant strategy.

b. Is there any dominant strategy equilibrium?

When both players have dominant strategies, an equilibrium with a dominating

strategy is reached. Neither Player A or Player B has a dominating strategy, as
we found in Part (a). As a result, this game lacks a dominant strategy equilibrium.

c. Are there Nash equilibria? If so, determine how many and state which strategies.

In order to locate Nash equilibria, we must search for strategy pairs in which,
considering the other player's strategy, neither party has an incentive to alone
depart.
Let's analyze the possible pairs of strategies:

1. (M, M): Player A's payoff = 25, Player B's payoff = 50

2. (N, N): Player A's payoff = 35, Player B's payoff = 15

Since there is a motivation for at least one participant in each pair to switch to a
different strategy in order to receive a larger payout, neither of these partnerships
is a Nash equilibrium .Therefore, this game does have 1 Nash Equilibria.

#12 Solve No. 11 using IESDS.

L M N
 L 30, 15 45, 35 55, 25
M 25, 35 20, 20 30, 50
N 15, 35 35, 40 15, 15

(M,L) is the Nash equilibrium of the game since 45,35 is higher than L and N

4. Consider the table on item #11, page 220. Solve for the maximin strategy of
each player. Does this game have a maximin solution? Justify your
answer.
Player 2
L2 M2 N2
Player L1 30, 15 45, 35 55, 25
1 M1 25, 35 20, 20 30, 50
N1 15, 35 35, 40 15, 15

Highlighted in red are the worst payoffs for Player 1 per move.

The highest payoff among all these is L1, which is 30.

Therefore, the maximin move for Player 1 is L1.

Player 2
L2 M2 N2
Player L1 30, 15 45, 35 55, 25
1 M1 25, 35 20, 20 30, 50
N1 15, 35 35, 40 15, 15

Highlighted in red are the worst payoffs for Player 2 per move.

The highest payoff among all these is M2, which is 20.

Therefore, the maximin move for Player 2 is M2.

Player 2
L2 M2 N2
Player L1 30, 15 45, 35 55, 25
1 M1 25, 35 20, 20 30, 50
 N1 15, 35 35, 40 15, 15

The maximin solution for the game is (L1, M2), which grants Player 1 45, and Player 2
35. This assures that the players can still get the maximum payoff among the worst
possible moves.

5. Item #24 on page 224 (Show your solution that would explain how you
arrived at your final answer.)

In this game, there are two players: A and B. A represents the first payoff value,
and B represents the second payoff value. To achieve subgame perfect
equilibrium, player A should first choose path A1, then player B should choose
path B2. Player A should then choose path A7, followed by player B choosing
path B8.

This solution was arrived at by solving the subgames by choosing the highest
payoff in the resulting paths, and moving backwards. Elimination of the paths that
result in the lowest payoff is what eventually leads to a path to the highest
payoffs.