Consider the strategic games described below In each case st

Consider the strategic games described below. In each case, state how you would classify the game according to the six dimensions outlined in the text. (i) Are moves sequential or simultaneous? (ii) Is the game zero sum or not? (iii) Is the game repeated? (iv) Is there imperfect information, and if so, is there incomplete (asymmetric) information? (v) Are the rules fixed or not? (vi) Are cooperative agreements possible or not? If you do not have enough information to classify a game in a particular dimension, explain why not.

a.) Garry and Ross are sales representatives for the same company, Their manager informs them that of the two of them, whoever sells more this year wins a Cadillac.

b.) On the game show The Price is Right, four contestants are asked to guess the price of a television set. Play starts with the leftmost player, and each player\'s guess must be different from the guess of the previous players. The person who comes closest to the real price, without going over it, wins the television set.

c.) Six thousand players each pasy $10,000 to enter the World Series of Poker. Each starts the tournament with $10,000 in chips, and they play No-Limit Texas Hold\'Em ( a type of poker) until someone wins all the chips. The top 600 players each receive prize money according to the order of finish, with the winner receiving more than 8,000,000.

d.) Passengers on Dessert Airlines are not assigned seats: passengers choose seats once they board. The airline assign the order of boarding according to the time the passenger checks in, either on the Web site up to 24 hours before takeoff or in person at the airport.

Solution

a) i) Game is simultaneous as both persons will sell simultaneously

ii) Game is not zero sum, as one will win and one will not get anything.

iii) Game is not repeated. It will be played once.

iv) Yes there will be incomplete information on who is going to sell how much.

v) Rules are fixed as whoever sells more will get the prize

vi) Cooperative game is possible if they agree to share the gift.

2.

i) Game is sequential as people will say the price one after another

ii) Game is not zero sum, as one will win and others will not get anything.

iii) Game is not repeated. It will be played once.

iv) There will be incomplete information as everyone will not know what everyone is going to say.

v) Rules are fixed as whoever gives closest price will win.

vi) Cooperative game is not possible.

c)

i) Game is sequential

ii) Game is zero sum, as someone\'s loss would be someone\'s win.

iii) Game is not repeated. It will be played once.

iv) There will be incomplete information

v) Rules are fixed

vi) Cooperative game is not possible.

d)

i) Game is sequential

ii) Game is zero sum, as someone\'s loss would be someone\'s win.

iii) Game is not repeated. It will be played once.

iv) There will be incomplete information

v) Rules are fixed

vi) Cooperative game is not possible.