Thel is tion 4 Sarah and David both plan to attend either the Red Sox game or th
ID: 1126108 • Letter: T
Question
Thel is tion 4 Sarah and David both plan to attend either the Red Sox game or the Celtics game after taking Moon's final exam. They prefer to meet at the same event, but before the exam they are so preoccupied to determine which event to attend and they don't run into each other afterwards. Suppose they don can't talk to determine which event they are going to go. The events are on opposite sid serious traffic Sarah and David must each choose one event to attend without knowing David will receive 10 utils (measure of happiness) if he ends up at the Red Sox game with Sarah and 5 utils at Red Sox game without her. Sarah will receive 8 utils if she finds David at the Red Sox game and 6 utils at the Red Sox game without him. David will receive 12 utils at the Celtics game with Sarah and 4 utils at the Celtics game without her. Sarah will receive 10 utils at the Celtics game with David and 3 utils at the Celtics game without him Total 7 pts.) 't have cell phones, so they es of town and due to the where the other will be. the Sarah Red Sox Celtics David Utils Utils Red Sox David Sarah Utils Utils Utils Utils Celtics Utils Utils (a) Complete the payoff matrix above to reflect the utility levels that David and Sarah will receive in each scenario. (3 pts.) (b) Find a David's dominant strategy if there is any. (1 pt.) (c) Find a Sarah's dominant strategy if there is any. (1 pt.) (d) Find a Nash Equilibrium/or Equilibria in this game. (2 pts.)Explanation / Answer
a)
b) David does not have a dominant strategy. (He would want to be with Sarah in order to earn a higher utility and would therefore change his decisions according to Sarah's decision)
c) Sarah also does not have a dominant strategy. (She would want to be with David in order to earn a higher utility and would therefore change her decisions according to David's decision)
d) There are two Nash equillibria: Both attend Red Sox game and Both attend Celtics game
Sarah Red Sox Celtics David Red Sox 10 , 8 5 ,3 Celtics 4 , 6 12 , 10Related Questions
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