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