In: Economics
please, do you know how to solve this game theory?
you should explain how can you solve it in detail
i do not know what is matrix? and this problem.
1. Represent the following game using a matrix.
There are two hunters going out for hunting together. Each has two
strategies: she may try to catch a stag or a hare. Catching a stag
is more difficult than catching a hare. A stag will be caught only
if two hunters try together. But a hare can be caught by one hunter
alone. If any hunter tries to catch a hare, she will catch the hare
and will not share it with the other . Each hunter prefers a share
of the stag to a hare. Specifically, if they catch a stag, each
hunter will get a payoff of 2. If a hunter catches a hare, she gets
a payoff of 1. If a hunter catches nothing, she gets 0.
First try to find dominant strategy .
Given each strategy of Hunter 2 , hunter 1 best response is different in each case. And same for hunter 2 . So both hunters don't have any dominant strategy.
The nash equilibrium is a situation from which no player wants to deviate, given opponent action is unchanged.
Outcome (2,2), is nash equilibrium. Given hunter 1 action, hunter 2 doesn't want to change his actions. And same apply to hunter 1 . So if both doesn't want to change their actions ao it is nash equilibrium.
Outcome ( 1,0) & (0,1) are not nash equilibrium because both outcome is associated with an incentive to change the action to players ,while opponent action is unchanged.
Outcome (1,1) is Nash equilibrium.given Hunter 2 move hare, the best move for hunter 1 is hare.
Given Hunter 1 move hare ,best move for hunter 2 is hare.
So both hunters doesn't want to change their actions,given their opponent action unchanged. So it is nash equilibrium.
So game has two nash equilibrium strategy set:
First when both choose stag and second when both choose hare.