Exam 28: Game Applications-Part A

Suppose AMD is considering cloning Intel's latest CPU chip.If AMD enters Intel's market, Intel can play Mean, expand its output, drop prices, and try to make AMD's profit as small as possible or play Nice by cutting back its output and sharing the market.AMD and Intel both know that after all moves are complete, the time-discounted profits of future chip production in billions of dollars are Assuming AMD moves first, which of the following is the Nash equilibrium for sequential play?

In the little town of Gas Pump, South Dakota, there are two gas stations across the street from each other, the East station and the West station.A local ordinance requires that they are permitted to change the price of gasoline only once a week at precisely 8:00a.m.on Monday and in 5 cent increments.For some time, the price of gasoline has been stable at $1.50 per gallon, but midweek, the price each station pays for gasoline changed to $1.44.Given the payoff matrix below, which of the following strategies is a pure strategy Nash equilibrium?

Alec and Kim used to be much better friends than they are now.The problem is what to do about Christmas gifts? If they wait until Christmas morning and move simultaneously, their payoff matrix is If Alec commits at Thanksgiving time not to buy a gift for Kim, Kim will find it in her best interest

Suppose Boeing and Airbus are both considering expanding their plant capacity as a strategic move but can't observe their opponent's move until their own move has been determined.The following are time-discounted values of all future profit streams in billions of dollars.Which of the following strategies are Nash equilibria?

Suppose AMD is considering cloning Intel's latest CPU chip.If AMD enters Intel's market, Intel can play Mean, expand its output, drop prices, and try to make AMD's profit as small as possible or play Nice by cutting back its output and sharing the market.AMD and Intel both know that after all moves are complete, the time-discounted profits of future chip production in billions of dollars are Assuming AMD moves first, which of the following is the Nash equilibrium for sequential play?

Alec and Kim used to be much better friends than they are now.The problem is what to do about Christmas gifts? If they wait until Christmas morning and move simultaneously, their payoff matrix is Under the circumstances, Alec should publicly announce at Thanksgiving that he is not buying a Christmas gift for Kim.

Suppose AMD is considering cloning Intel's latest CPU chip.If AMD enters Intel's market, Intel can play Mean, expand its output, drop prices, and try to make AMD's profit as small as possible or play Nice by cutting back its output and sharing the market.AMD and Intel both know that after all moves are complete, the time-discounted profits of future chip production in billions of dollars are Assuming AMD moves first, which of the following is the Nash equilibrium for sequential play?

Alec and Kim used to be much better friends than they are now.The problem is what to do about Christmas gifts? If they wait until Christmas morning and move simultaneously, their payoff matrix is If Kim is worried that Alec is going to announce publicly what he is going to do at Thanksgiving, Kim would definitely be made better off by announcing her action publicly at Halloween.

Consider the goa lie's anxiety at the penalty kick.Let the kicker's payoffs below represent the kicker's probability of success and the goalie's payoffs the probability of failure. The goalie should defend left with probability

In the classic 1960s macabre comedy Dr.Strangelove, the Soviet Union constructed a Doomsday Machine which would end all life on earth if ever the Soviet Union were attacked.When playing against a rational opponent, the existence of such a machine would be of great benefit to the Soviets.

Consider the goalie's anxiety at the penalty kick.Let the kicker's payoffs below represent the kicker's probability of success and the goalie's payoffs the probability of failure. The goalie should defend left with probability

Consider the goalie's anxiety at the penalty kick.Let the kicker's payoffs below represent the kicker's probability of success and the goalie's payoffs the probability of failure. The goalie should defend left with probability

Recall from the movie Dr.Strangelove, General Turgison (played by George C.Scott)remarks, "Boy, I sure wish we had one of those Doomsday Machines." If both the United States and the Soviet Union possess a Doomsday Machine, the payoffs for a simultaneous attack are as follows: Would it be desirable from the U.S.perspective to have its own Doomsday Machine? Explain why or why not?

In a small isolated town, there are two types of people, saints and crooks.In business dealings between any two residents of this town, the payoffs are below. What percentage of this town's residents would be saints in an evolutionary stable strategy?