Game Theory -Deletion of strictly dominated strategies

In summary, the conversation is about finding Nash equilibria in a game with two players and three strategies. Player 1's strategies are a and b, while player 2's strategies are a, b, and c. The solution suggests that the pure-strategy equilibria are (a,a) and (a,b). In part b), player 2's strategy c is eliminated as it is strictly dominated by a and b. In part c), it is discussed whether a mixed-strategy equilibrium is possible, but it is ultimately determined that the pure-strategy equilibrium (a,a) is the only Nash equilibrium. Finally, the solution suggests using the answers from parts b) and c) to find the solution for part d).
  • #1
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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  • #2
no ideas?
 
  • #3
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).
 

1. What is game theory?

Game theory is a branch of mathematics that studies strategic interactions between rational decision makers. It is used to analyze and understand decision making in situations where the outcome of one person's choice depends on the choices of others.

2. What is meant by "deletion of strictly dominated strategies" in game theory?

In game theory, a strictly dominated strategy is one that is always worse than another strategy, regardless of the choices made by other players. The deletion of strictly dominated strategies is the process of eliminating these inferior strategies from a game in order to simplify the analysis and focus on the most relevant strategies.

3. Why is it important to delete strictly dominated strategies in game theory?

Deleting strictly dominated strategies allows for a more accurate and efficient analysis of a game. It helps to identify the most optimal strategies for each player and can simplify complex games into more manageable ones. It also allows for a better understanding of strategic interactions and can help predict outcomes in real-world situations.

4. How is the deletion of strictly dominated strategies carried out in practice?

The deletion of strictly dominated strategies is typically carried out by iteratively eliminating strategies that are strictly dominated by others until no strictly dominated strategies remain. This process can be done manually or using mathematical tools such as the iterative elimination of dominated strategies algorithm.

5. Are there any limitations to the deletion of strictly dominated strategies in game theory?

While the deletion of strictly dominated strategies is a useful tool in game theory, it does have its limitations. It assumes that players are rational decision makers and may not accurately reflect real-world behavior. It also cannot account for all possible outcomes in a game and may miss important strategic considerations.

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