Game theory

Solution Manual for A Course in Game Theory by Martin J. Osborne and Ariel Rubinstein, with the assistance of Wulong Gu

Copyright c 1994 by Martin J. Osborne and Ariel Rubintstein. All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from the authors. This file is for your personal use only. You are not permitted to transfer it to anyone else, to copy it, to include any part of it in any other file, or to make it available on any website (whether or not password-protected). Version 1.2, 2005-1-17.

Solution Manual for A Course in Game Theory by Martin J. Osborne and Ariel Rubinstein

Martin J. Osborne Ariel Rubinstein with the assistance of Wulong Gu

The MIT Press Cambridge, Massachusetts London, England

Copyright c 1994 Martin J. Osborne and Ariel Rubinstein All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from the authors. This manual was typeset by the authors, who are greatly indebted to Donald Knuth (the A creator of TEX), Leslie Lamport (the creator of L TEX), and Eberhard Mattes (the creator of emTEX) for generously putting superlative software in the public domain, and to Ed Sznyter for providing critical help with the macros we use to execute our numbering scheme.

Version 1.2, 2005/1/17

Contents

Preface 2

ix

Nash Equilibrium 1 Exercise 18.2 (First price auction) 1 Exercise 18.3 (Second price auction) 1 Exercise 18.5 (War of attrition) 2 Exercise 19.1 (Location game) 2 Exercise 20.2 (Necessity of conditions in Kakutani’s theorem) 3 Exercise 20.4 (Symmetric games) 3 Exercise 24.1 (Increasing payoffs in strictly competitive game) 3 Exercise 27.2 (BoS with imperfect information) 4 Exercise 28.1 (Exchange game) 4