Exam 16

Exercise 16. Consider the following bimatrix game:

16.1 Find strictly dominated strategies (if any) and reduce the cost matrices accordingly.

16.2 Do pure strategies Nash equilibria exist? Why?

16.3 Evaluate the gap function at the point (x, y), where x = (1/3, 2/3) and y = (1/4, 3/4), in order to check if it is a Nash equilibrium.

16.4 Plot the polyhedra P and Q related to the game and find all the mixed strategies Nash equilibria.

16.5 Find the KKT multipliers related to the mixed strategies Nash equilibrium.