You may discuss each problem with one or two other persons. Each person must do her or his own write
up. Moreover, you may not simply write down a solution and give it to the other person. You may present
things to each other on (say) a whiteboard, but the other person should not simply be copying things
over. You should acknowledge everyone you worked with, as well as all other sources, on the write up.
Assignments are always due immediately at the beginning of class.
(1) Comparative Statics of Mixed Strategy Equilibria. Consider the following twoplayer game.
U 12,2 3,9
D 5,8 4,2
(a) Find all the Nash equilibria, pure and mixed. Explain how you know you have found all the equilibria.
(b) Suppose that the payoff the column player u2(D; l) is reduced from 8 to 6, but all other payoff remain
the same. Again, find all the pure and mixedstrategy Nash equilibria.