What is a nash equilibrium


Assignment:

1. What is a "strategy" in game theory? Provide its definition briefly.

2. What is a "Nash equilibrium"?

3. Find the unique Nash equilibrium in the following game (Prisoner's Dilemma)

2031_Equilibrium.jpg

4. Find two pure-strategy Nash equilibrium in the following game (Battle of Sexes)

346_Pure strategy.jpg

5. Show that there does not exist a pure-strategy Nash equilibrium in the following game (Matching pennies)

1631_Matching pennies.jpg

6. In the game given in 5, show that it is a mixed-strategy equilibrium that both players play each action with probability 1/2.

7. What is a "subgame perfect Nash equilibrium"? Provide its definition briefly.

8. Find a subgame perfect Nash equilibrium of the following extensive-form game.

949_Game.jpg

9. Find a subgame perfect Nash equilibrium of the following extensive-form game.

880_Entry game.jpg

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Game Theory: What is a nash equilibrium
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