IA168 — Problem set 2 Throughout this problem set, “game” means “two-player strategic-form game with mixed strategies”. Problem 1 [7 points] Consider a game where each player has exactly five pure strategies, called Ai, Bi, Ci, Di, Ei for i ∈ {1, 2}. The utility functions are defined by the following table: A2 B2 C2 D2 E2 A1 (−4, 4) (−3, 2) (2, 2) (4, 1) (−2, −1) B1 (0, 6) (−3, 3) (2, 3) (7, 3) (−3, 3) C1 (−6, 0) (3, 6) (4, 1) (1, 2) (−6, 0) D1 (−2, −1) (−2, 7) (2, 2) (5, 3) (−5, 3) E1 (−6, 3) (−6, 3) (1, 3) (3, 2) (3, 6) (a) Find a Nash equilibrium σ∗ = (σ∗ 1, σ∗ 2) such that | supp(σ∗ 1)| + | supp(σ∗ 2)| is maximal. (b) Prove that σ∗ is a Nash equilibrium. (c) Prove the maximality of | supp(σ∗ 1)| + | supp(σ∗ 2)|. Problem 2 [5 points] Give an example of a game where (a) there is no weakly dominating pure strategy, but there exists a weakly dominating mixed strategy; (b) there is no weakly dominating pure strategy, but there exists a very weakly dominating mixed strategy; (c) there is no strictly dominated pure strategy, but there exists a strictly dominated mixed strategy; (d) there is no very weakly dominated pure strategy, but there exists a strictly dominated mixed strategy or prove that no such game exists. Problem 3 [8 points] Prove that for every k ∈ M there is a game with exactly k Nash equilibria, where (a) M = {2n − 1 | n ∈ N}; (b) M = N.