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Questions › DSE › DSE 2020 › Q24
4 marks, −1Game Theory › Game theory and strategic behaviour › Extensive-form games and backward inductionModerateabout 3 min

DSE 2020 Question 24: Game theory and strategic behaviour

Let GGG be a 2×22\times 22×2 game (player 111 chooses rows U,DU,DU,D; player 222 chooses columns L,RL,RL,R), and let G′G'G′ be obtained from GGG by giving player 222 an additional column (strategy) MMM, with the payoffs in the LLL and RRR columns unchanged. Then

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Let G be a 2× 2 game (player 1 chooses rows U,D; player 2 chooses columns L,R), and let G′ be obtained from G by giving player 2 an additional column (strategy) M, with the payoffs in the L and R columns unchanged. Then (A) 2 's payoff in a Nash equilibrium of G′ cannot be less than 2 's payoff in a Nash equilibrium of G (B) 2 's payoff in a Nash equilibrium of G cannot be less than 2 's payoff in a Nash equilibrium of G′ (C) 2 's payoff in a Nash equilibrium of G must be equal to 2 's payoff in a Nash equilibrium of G′ (D) 2 's payoff in a Nash equilibrium of G may be higher than 2 's payoff in a Nash equilibrium of G′

Also written as: Let G be a 2* 2 game (player 1 chooses rows U,D; player 2 chooses columns L,R), and let G' be obtained from G by giving player 2 an additional column (strategy) M, with the payoffs in the L and R columns unchanged. Then

Game theory and strategic behaviour has come up 61 times in 6 exams since 2008.

What this question tests

This question is on Extensive-form games and backward induction, part of Game theory and strategic behaviour in Game Theory.

Games played in sequence, solved from the end back to the start.

TestStop has 16 past-paper questions on this subtopic.

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Question from the DSE 2020 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.