Simon Fraser University ECON 302 Spring 2016 S. Lu Problem Set 4 Due on February 15, at 2:30pm Remember to show your work on all questions. 1. Consider the following game: Top Bottom a) b) c) d) Left 0,0 1,2 Right 3,-1 x,y For what values of x and y is (Top, Left) a Nash equilibrium? For what values of x and y is (Bottom, Left) a Nash equilibrium? For what values of x and y is (Top, Right) a Nash equilibrium? For what values of x and y is (Bottom, Right) a Nash equilibrium? 2. For each of the following games, find all Nash equilibria, and for each of them, find the players’ expected payoffs. Game a Give Easy Test Give Hard Test Study 0,2 5,1 Slack Off 1,1 -5,0 Disclaimer: Game a does not describe accurately the payoffs in ECON 302. Game b Post Risqué Picture Not Post Risqué Picture Game c Bring a Cake Bring Chicken Game d Wear Blue Wear Red Check Child’s Facebook Profile -5,1 -1,3 Ignore Child’s Facebook Profile 5,0 0,4 Make Tiramisu -1,-1 3,2 Make Steak 2,1 0,0 Wear White 0,0 0,0 Wear Black 0,0 0,0