Game Theory -Deletion of strictly dominated strategies

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SUMMARY

The discussion focuses on the deletion of strictly dominated strategies in game theory, specifically addressing a homework problem involving Nash equilibria. The participant identifies that Player 1's strategy 'c' is strictly dominated by strategies 'a' and 'b', leading to the conclusion that the pure-strategy equilibrium is (a,a). Further analysis reveals that Player 2's best response to a mixed strategy from Player 1 must be considered to determine additional equilibria. The conversation emphasizes the importance of eliminating dominated strategies to simplify the analysis of Nash equilibria.

PREREQUISITES
  • Understanding of Nash equilibria in game theory
  • Knowledge of strictly dominated strategies
  • Familiarity with mixed strategies in strategic games
  • Basic concepts of game theory notation and terminology
NEXT STEPS
  • Study the concept of Nash equilibria in-depth, focusing on examples involving strictly dominated strategies
  • Learn about mixed strategy equilibria and how they differ from pure strategy equilibria
  • Explore the implications of eliminating dominated strategies in various game scenarios
  • Review advanced game theory texts or resources that cover equilibrium concepts and strategy elimination
USEFUL FOR

Students of game theory, educators teaching strategic decision-making, and analysts involved in economic modeling will benefit from this discussion.

jb7
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Homework Statement



Hi, I was wondering if I could get some help with these questions.

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Homework Equations



n/a

The Attempt at a Solution



a) I (think) I can do this one, mutual best responses would suggest that the nash equilbria are (a,a), (a,b) and (b,c)

b) Now this is the question where I get stuck. Player 1's strategy c can be eliminated, as it is strictly dominated by a (and b). But I am not sure what to do from here, I am guessing that I have to eliminate a strategy for player 2, but I can't see any that are strictly dominated. There don't even seem to be any strategies that are eliminated by mixed strategies..

please help! thanks :)
 
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no ideas?
 
Usually you ignore dominated strategies when finding a pure-strategy equilibrium. So player 2 plays a) which dominates his other strategies. And player 1 plays a), so the pure-strategy equilibrium is (a,a).

In b), the only eliminated strategy is p1_c, like you said. So that's it.

For c), suppose that P1 played both a and b with non-zero weight. What would P2's best response be? Suppose both sides played the resultant strategies. ie, P1 played a/b in some proportion, and P2 played his best response. Would this be a Nash equilibrium?

Now use the answers from b) and c) to find part d).
 

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