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Consider the following game. Player 1 is either \"Friendly\" (with probability 2

ID: 2746856 • Letter: C

Question

Consider the following game. Player 1 is either "Friendly" (with probability 2/3) or "Mean" (with probability 1/3), and decides to Smile or Not Smile. A Friendly type has no cost of smiling, but a Mean type has a cost of 4. Player 2 decides to Ask or Not ask Player 1 for help. If Player 2 does not ask Player 1 for help, both players get 0 (minus any cost of smiling for 1). If Player 2 asks a Friendly Player 1 for help, both players get +3 units of utility (minus any cost of smiling for 1). If Player 2 asks a Mean Player 1 for help, Player 2 gets -3 units of utility while Player 1 gets +3 units of utility (minus any cost of smiling) because he gets a chance to be mean to the other player. Player 2 does not know if 1 is Friendly or Mean (but Player 1 does). For the case below, (a) draw the extensive form of the game, and (b) solve the game using the appropriate solution concept using pure strategies

Player 2 sees whether Player 1 is smiling when he’s deciding whether to ask for help.

Explanation / Answer

Consider the following game. Player 1 is either "Friendly" (with probability 2/3) or "Mean" (with probability 1/3), and decides to Smile or Not Smile. A Friendly type has no cost of smiling, but a Mean type has a cost of 4. Player 2 decides to Ask or Not ask Player 1 for help. If Player 2 does not ask Player 1 for help, both players get 0 (minus any cost of smiling for 1). If Player 2 asks a Friendly Player 1 for help, both players get +3 units of utility (minus any cost of smiling for 1). If Player 2 asks a Mean Player 1 for help, Player 2 gets -3 units of utility while Player 1 gets +3 units of utility (minus any cost of smiling) because he gets a chance to be mean to the other player. Player 2 does not know if 1 is Friendly or Mean (but Player 1 does). For the case below, (a) draw the extensive form of the game, and (b) solve the game using the appropriate solution concept using pure strategies.

Player 2 sees whether Player 1 is smiling when he’s deciding whether to ask for help.

Answer :

This is case of pure strategy .

Maxmin = Minimax

Player 1 selects = Family Strategy

Player 2 selects = Mean or Family Strategy

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