0
$\begingroup$

Consider the following strategic game with complete information played by three players. Each player $i ∈ {1, 2, 3}$ chooses her action from $A = \{1, 2, . . . , 10\}$. Utility functions, mapping each action profile $(a_1, a_2, a_3) ∈ A^3$ into utils, of the three players are as follows: $$u_1(a_1, a_2, a_3)=-|a_3-a_1|+|a_2-a_1|$$ $$u_2(a_1, a_2, a_3)=-|a_1-a_2|+|a_3-a_2|$$ $$u_3(a_1, a_2, a_3)=-|a_2-a_3|+|a_1-a_3|$$

The given solution is as follows:

Suppose $a_1 < a_3$. Straightforward argument shows that the set of actions that constitute pure best response for player 2 is $\{1, . . . , a_1\}$. When $a_1 > a_3$, the set is $\{a_1, . . . , 10\}$ and when $a_1 = a_3$, then the set is $\{1, . . . , 10\}$.

This solution is too short for me to understand how to start solving it. I understand the conditions when one is >,< or = but I do not seem to follow how the BR is calculated

$\endgroup$
7
  • 2
    $\begingroup$ So you don't understand "Suppose $a_1 < a_3$. Straightforward argument shows that the set of actions that constitute pure best response for player 2 is $\{1, . . . , a_1\}$."? Have you tried substituting numbers to see if that makes it easier for you to understand? E.g., do you see why if $a_1 = 5, a_3 = 8$, and Player $2$'s payoff function is $$u_2(5, a_2, 8)=-|5-a_2|+|8-a_2|$$ they would never play numbers larger than 5? $\endgroup$
    – Giskard
    Commented Jan 24, 2022 at 15:52
  • 2
    $\begingroup$ "When $a_1 > a_3$, the set is $\{a_1, . . . , 10\}$", so yes. $\endgroup$
    – Giskard
    Commented Jan 24, 2022 at 16:27
  • 1
    $\begingroup$ I’m voting to close this question because it is a specific self-study problem and was resolved in the comments. $\endgroup$
    – Giskard
    Commented Jan 24, 2022 at 18:26
  • 1
    $\begingroup$ If the OP has solved the question, they could answer it themselves so we have a completed Q and A instead of closing off the question? $\endgroup$ Commented Jan 25, 2022 at 16:26
  • 1
    $\begingroup$ @Giskard I am slightly lost for words. $\endgroup$ Commented Jan 26, 2022 at 14:49

1 Answer 1

1
$\begingroup$

The given solution is as follows:

Suppose $a_1 < a_3$. Straightforward argument shows that the set of actions that constitute pure best response for player 2 is $\{1, . . . , a_1\}$. When $a_1 > a_3$, the set is $\{a_1, . . . , 10\}$ and when $a_1 = a_3$, then the set is $\{1, . . . , 10\}$.

Suppose we set $a_1=5$ and $a_3=3$ as in the case when $a_1>a_3$, as described in the comment as well $$u_2(5, a_2, 3)=-|5-a_2|+|3-a_2|$$ then player 2 would be better playing from $\{a_1,....10\}$ and vice versa.

$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge you have read our privacy policy.

Not the answer you're looking for? Browse other questions tagged or ask your own question.