Open with Google Docs
1. Consider all three games given in the following game matrices:
Game 1
Left Right
Up 0,0 2,1
Down 1,2 0,0
Game 2
Left Right
Up 4,3 3,4
Down 2,1 1,2
Game 3
Left Right
Up 4,1 2,2
Down 3,3 1,4
For each of the above three games, answer these questions:
(a) What is the equilibrium if neither player can use any strategic moves?
(b) Can one player improve his payoff by using a strategic move (commitment, threat,
or promise) or a combination of such moves? If so, which player makes what
strategic move(s)?