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Quiz 2
NAME:
ROLL NO.:
L M R
A 4,3 2,1 1,3
B 2,3 1,5 3,5
C 1,5 0,4 7,4
a. Iteratively eliminate all strictly dominated strategies; state the eliminated strategy, it’s
reason for elimination and the reduced game for each elimination. (5 marks)
b. State whether it is dominance solvable using IESDS. (1 mark)
c. What are the rationalizable strategies? (1 mark)
d. State any pure strategy Nash Equilibria (1 mark)
3. A 2-player sequential game has the following rules. Player 1 moves first and decides whether to
put $0, $1 or $3 into an investment. If he puts in $0 then the game ends and both players get
nothing. In both other cases, Player 2 then has two options - either invest the same amount of
money as player 1 (match) or take the money Player 1 (steal) has put in. Both players then make
a net return on their investment (their payoffs!) as per the following table
Match Steal
A (invest $1) 1,1.5 -1,1
B (invest $3) 3, 2 -3,3