Question

(ECONOMICS OF STRATEGY, GAME THEORY) QUESTIONS PLEASE ANSWERR

Solve the following games with iterated elimination of dominated strategies. Indicate the order of elimination and at each step explain why these strategies are eliminated.

Answer 1

Iterated elimination of dominated strategy .

It's about finding a dominated strategy from the certain game with different payoffs combinations between the two players .

Finding the dominated strategy can be done by eliminating the weaker combination payoffs from the game.

Player 1 with strategy of A,B and C for every each strategy of Player 2 that is X,Y and Z.

The details for elimination describing below with the given example .

We are taking 3×3 game with play 1 startegies (ABC) and player 2 strategies (XYZ).

Now the game will be simplifer after eliminating combination of Z.

Now in this game we eliminate the weaker row. Now the middle strategy (B) is worse than the (A&C) strategies.

So, B is dominated by A and C. There fore the B strategies eliminated.  

Now the game will be simplified to find dominated strategy.

Now to find we will more simplify the game

these are the steps to find the iterated elimination of dominated strategy.