ECON 221 Study Guide - Quiz Guide: Strategic Dominance, Stratego
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True or false (6 points) - classify the statements below in true (t) or false (f). In a prisoner"s dilemma situation, players are expected to attain their mutually beneficial outcome in equilibrium. Confess is dominant for both players, but the ne achieved by dominance does not give them the most efficient outcome. The order of elimination does not matter for iterated elimination of strictly dominated strategies, only for elimination of weakly dominated strategies. Counter example with a matrix involving weakly dominated strategies can show that the order matters. Auction (8 points) - queen elizabeth has decided to auction off the crown jewels, and there are two bidders: sultan hassanal bolkiah of brunei and sheik zayed bin of abu. The action format is as follows: the sultan and sheik simultaneously submit a written bid. The bidder who submits the highest bid wins the jewels and pays a price equal to his bid.
