Finding the optimal strategies of two players


Assignment:

Q1. Find an example of a strategic form game G and of an equilibrium s∗ of that game such that for each player i ∈ N the strategy si is dominated.

Q2. The following questions relate to the following two-player zero-sum game.

851_equilibrium.JPG
(a) Find an optimal strategy for each player by applying backward induction.
(b) Describe this game in strategic form.
(c) Find all the optimal strategies of the two players.
(d) Explain why there are optimal strategies in addition to the one you identified by backward induction.

Provide complete and step by step solution for the question and show calculations and use formulas.

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Game Theory: Finding the optimal strategies of two players
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