Homework 9

Circle the pure strategy equilibria.

1.			Bob
		Left		Right
	Top	(5,6)		(16,2)
Ann
	Down	(3,0)		(15,10)

2.			Bob
		Left		Right
	Top	(8,8)		(2,2)
Ann
	Down	(6,5)		(7,7)

3.			Bob
		Left		Right
	Top	(8,2)		(6,4)
Ann
	Down	(6,6)		(4,0)

4.			Bob
		Left		Right
	Top	(3,1)		(0,2)
Ann
	Down	(1,5)		(2,0)

5.			Bob
		Left		Right
	Up	(1,5)		(6,0)
Ann
	Down	(2,10)		(1,4)

6.			Bob
		Left		Right
	Up	(2,6)		(5,2)
Ann
	Down	(4,8)		(1,1)

Compute the mixed strategy equilibria

7.			Bob
		Left		Right
	Up	(6,4)		(6,2)
Ann
	Down	(8,2)		(4,4)

8.			Bob
		Left		Right
	Up	(8,6)		(0,0)
Ann
	Down	(4,2)		(6,8)


9. A trigger strategy is
a. an explicit threat to revert to competitive pricing if another firm deviates.
b. an implicit threat to revert to monopoly pricing if another firm deviates.
c. an implicit threat to revert to competitive pricing if another firm deviates.
d. an explicit threat to revert to monopoly pricing if another firm deviates.

10. If all the payoffs in a game are multiplied by five, will the choice of 
equilibrium strategies change?  Why or why not?