Homework #9, Econ 306, Prof. Hanson, Spring 2001.

1. The following table describes a normal form game.

a. What is a pure strategy equilibrium of this game?

b. Is there another possible outcome that Pareto dominates this equilibrium? If so, what is it?

(0,0)	(-1,2)	(3,1)
(-1,2)	(-3,5)	(0,0)
(-2,0)	(1,1)	(-1,0)

2. Big brother and little brother will simultaneously choose a room, A or B. Big brother gets a payoff of 1 if he is in a different room than little brother, and 0 if he is in the same room. Little brother gets a payoff of 1 if he is in the same room as big brother, and 0 if he is in a different room. Show the payoff matrix for this game. Does this game have a pure strategy equilibrium?