Types of Games

Question 1

Prisoners Dilema

Answer 1

Solution can be found using the strictly dominant strategy. However, the N.E, does not lead to the Pareto optimal outcome.

Question 2

Solution Concept for battle of the sexes.

Answer 2

The standard equilibrium concept in the battle of the sexes is the Nash equilibrium. A Nash equilibrium is a pair of strategies, one for each player, such that player 1’s strategy is the best for her given player 2’s strategy, and such that player 2’s strategy is the best for him given player 1’s strategy. Each player’s strategy is a best response to the other’s.

Question 3

Different between stag hunt and prisoners dilemma

Answer 3

In Prisoner’s Dilemma, there is a conflict between individual rationality and mutual benefit.
In the Stag Hunt, what is rational for one player to choose depends on his beliefs about what the other will choose.

Rational players are pulled in one direction by considerations of mutual benefit and in the other by considerations of personal risk.