Proble: Game theory- solve

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Proble: Game theory- solve

Atika Gupta
Ques: Suppose that 100 people live in a village where an election is being held. 51 villagers support the conservative candidate (A) and 49 support the liberal candidate (B). The candidate getting the most vote wins. In case of a tie the winner is decided by the toss of a fair coin. A villager gets a payoff of +10 units of utility if her favourite candidate gets elected and a payoff of -10 units of utility if the opposition gets elected. But voting is a nuisance that costs voters one unit of utility. Those who stay at home and do not vote evade this cost, but are rewarded or punished just the same as those who shoulder the cost of voting.
Which of the following statements is correct?

a. In the above game nobody choosing to vote is a nash equilibrium outcome.
b. There is no nash equilibrium outcome in which everybody chooses to vote.
c. One pure strategy nash equilibrium outcome is:
    All the supporters of the conservative candidate vote for A and all the supporters of the liberal candidate vote for B.
d. none of the above.
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Re: Proble: Game theory- solve

vandita24x7
option B


On Tue, Mar 11, 2014 at 6:23 PM, Atika Gupta [via Discussion forum] <[hidden email]> wrote:
Ques: Suppose that 100 people live in a village where an election is being held. 51 villagers support the conservative candidate (A) and 49 support the liberal candidate (B). The candidate getting the most vote wins. In case of a tie the winner is decided by the toss of a fair coin. A villager gets a payoff of +10 units of utility if her favourite candidate gets elected and a payoff of -10 units of utility if the opposition gets elected. But voting is a nuisance that costs voters one unit of utility. Those who stay at home and do not vote evade this cost, but are rewarded or punished just the same as those who shoulder the cost of voting.
Which of the following statements is correct?

a. In the above game nobody choosing to vote is a nash equilibrium outcome.
b. There is no nash equilibrium outcome in which everybody chooses to vote.
c. One pure strategy nash equilibrium outcome is:
    All the supporters of the conservative candidate vote for A and all the supporters of the liberal candidate vote for B.
d. none of the above.


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Re: Proble: Game theory- solve

Atika Gupta
In reply to this post by Atika Gupta
That's right
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Re: Proble: Game theory- solve

vandita24x7

Hi atika,
Are u preparing for M.A entrance?

vandita

On 12 Mar 2014 17:49, "Atika Gupta [via Discussion forum]" <[hidden email]> wrote:
That's right


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Re: Proble: Game theory- solve

SoniaKapoor
In reply to this post by Atika Gupta
Could u explain atika
MA Economics
DSE
2014-16
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Re: Proble: Game theory- solve

kangkan
In reply to this post by Atika Gupta
Hi ..Can you please help with an explanation..thanks
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Re: Proble: Game theory- solve

Atika Gupta
In reply to this post by vandita24x7
No I am preparing for my Phd entrance exam.
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Re: Proble: Game theory- solve

vandita24x7

Hi atika i am preparing for mphil.... u too for mphil right?

vandita

On 12 Mar 2014 18:25, "Atika Gupta [via Discussion forum]" <[hidden email]> wrote:
No I am preparing for my Phd entrance exam.


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Re: Proble: Game theory- solve

vandita24x7
In reply to this post by Atika Gupta

Nobody voting cannot be nash equilibrium as that would imply a tie and decision is taken by a toss.. where any outcome is possible..both being equally likely..so better to vote to make ur favorite candidate win.

Also everybody voting is not nash equilibrium because even if one of the supporters of conservative candidate does not vote(50 out of 51 turn up)..still the canditate A can win with a difference of one vote. Likewise u can explain for supporters of the liberal candidate.

vandita

On 12 Mar 2014 18:28, "vandita mishra" <[hidden email]> wrote:

Hi atika i am preparing for mphil.... u too for mphil right?

vandita

On 12 Mar 2014 18:25, "Atika Gupta [via Discussion forum]" <[hidden email]> wrote:
No I am preparing for my Phd entrance exam.


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Re: Proble: Game theory- solve

Atika Gupta
Yes.
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Re: Proble: Game theory- solve

Atika Gupta
  Here, following is the game:

                  B
         V           NV

A V   9,-11     9,-10
   
   NV -10,9     0,0

A- support conservative candidate and B support liberal.
When A and B vote, A's candidate wins and they get utility = 10-1 and B loose and get -10-1.
When A vote and B does not vote , A win

When none of them vote then coin is tossed and they get expected payoff as 1/2(10)+1/2(-10)=0
Here nash eqbm is v, nv
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Re: Proble: Game theory- solve

Atika Gupta
In reply to this post by Atika Gupta
Hey Vandita,

So where will u be applying for mphil
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Re: Proble: Game theory- solve

vandita24x7
In reply to this post by Atika Gupta

Ur from which university?? And where do u intend to apply??

vandita

On 12 Mar 2014 18:46, [hidden email] wrote:

Great..atleast i found one person here preparing for mphil. Can we discuss questions here on a regular basis..i hv a lot of doubts? If u agree i will post questions everyday then we can verify if answer matches. Wat do u say?? Also let me knw ur mail id..

vandita

On 12 Mar 2014 18:42, "Atika Gupta [via Discussion forum]" <[hidden email]> wrote:
Yes.


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Re: Proble: Game theory- solve

vandita24x7
In reply to this post by Atika Gupta

Great..atleast i found one person here preparing for mphil. Can we discuss questions here on a regular basis..i hv a lot of doubts? If u agree i will post questions everyday then we can verify if answer matches. Wat do u say?? Also let me knw ur mail id..

vandita

On 12 Mar 2014 18:42, "Atika Gupta [via Discussion forum]" <[hidden email]> wrote:
Yes.


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Re: Proble: Game theory- solve

Atika Gupta
Ya even I have many doubts. We can do that. I have done my masters from dse. I intend to apply in dse and jnu. wat about u?
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Re: Proble: Game theory- solve

vandita24x7

Alright i m doing masters..now in final semester in presidency university. U hv completed masters?

vandita

On 12 Mar 2014 18:54, "Atika Gupta [via Discussion forum]" <[hidden email]> wrote:
Ya even I have many doubts. We can do that. I have done my masters from dse. I intend to apply in dse and jnu. wat about u?


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Re: Proble: Game theory- solve

vandita24x7
In reply to this post by Atika Gupta

Btw atika in this question can we surely say that v, nv is the NASH EQUILIBRIUM???

vandita

On 12 Mar 2014 18:56, "vandita mishra" <[hidden email]> wrote:

Alright i m doing masters..now in final semester in presidency university. U hv completed masters?

vandita

On 12 Mar 2014 18:54, "Atika Gupta [via Discussion forum]" <[hidden email]> wrote:
Ya even I have many doubts. We can do that. I have done my masters from dse. I intend to apply in dse and jnu. wat about u?


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Re: Proble: Game theory- solve

Atika Gupta
yes it is a nash eqbm. Do u hve something else in ur mind?/
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Re: Proble: Game theory- solve

Amit Goyal
Administrator
Atika, This is incorrect. In this game there is no pure strategy equilibrium.
Here is the proof:
I will use the following terminology for explanation: I will call a voter "type i voter" if she supports candidate i.
And given a strategy profile s, n(i, s) denotes the number of voters voting for i in s.

Lemma 1: For type i voter, strategy of voting for candidate j ≠ i is strictly dominated by not voting.
Proof:
Clearly, such a voter can at least benefit by 1 (voting costs) by choosing not to vote. Thus, every type A voter will either choose to vote for A or will choose not to vote. And similarly a type B voter will either vote for B or none.

Lemma 2: Any strategy profile in which both candidates receive positive number of votes cannot be a Nash equilibrium i.e. s such that n(A, s) > 0 and n(B, s) > 0 is not a Nash equilibrium.
Proof:
Case 1: 0< n(A, s) < n(B, s): Consider a type A voter who choose to vote in s. Her payoff in strategy profile s is -11. If she does not vote, she gets -10. Hence, s is not a Nash equilibrium.
Case 2: 0< n(B, s) < n(A, s): Consider a type B voter who choose to vote in s. Her payoff in strategy profile s is -11. If she does not vote, she gets -10. Hence, s is not a Nash equilibrium.
Case 3: 0< n(B, s) = n(A, s): Consider a type A voter who choose not to vote in s. Her payoff in strategy profile s is 0. If she votes, she gets 9. Hence, s is not a Nash equilibrium.
Thus, s such that n(A, s)> 0 and n(B, s)>0 is not a Nash equilibrium.

Lemma 3: Any strategy profile in which any candidate receiving more than 1 vote cannot be a Nash equilibrium i.e. s such that n(A, s)> 1  or n(B, s) > 1 is not a Nash equilibrium.
Proof:
By Lemma 2, we just need to check these two cases:
Case 1: n(A, s) > 1 and n(B, s) = 0: Consider a type A voter who choose to vote in s. Her payoff in strategy profile s is 9. If she does not vote, she gets 10. Hence, s is not a Nash equilibrium.
Case 2: n(B, s) > 1 and n(A, s) = 0: Consider a type B voter who choose to vote in s. Her payoff in strategy profile s is 9. If she does not vote, she gets 10. Hence, s is not a Nash equilibrium.

Lemma 4: There is no pure strategy Nash equilibrium.
Proof:
By Lemma 2 and Lemma 3, we just need to analyse the following three cases:
Case 1: n(A, s) = 1 and n(B, s) = 0: Consider a type B voter who choose not to vote in s. Her payoff in strategy profile s is -10. If she votes, she gets -1. Hence, s is not a Nash equilibrium.
Case 2: n(A, s) = 0 and n(B, s) = 1: Consider a type A voter who choose not to vote in s. Her payoff in strategy profile s is -10. If she votes, she gets -1. Hence, s is not a Nash equilibrium.
Case 3: n(A, s) = 0 and n(B, s) = 0: Consider a type B voter who choose not to vote in s. Her payoff in strategy profile s is 0. If she votes, she gets 9. Hence, s is not a Nash equilibrium.

Hence, there is no Nash equilibrium in pure strategies.
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Re: Proble: Game theory- solve

vandita24x7

Yes no pure strategy eqbm, this is what i had in mind.. so here can we have nash equilibrium in mixed strategy?? If yes how to assign appropriate probabilities..?

vandita

On 13 Mar 2014 16:48, "Amit Goyal [via Discussion forum]" <[hidden email]> wrote:
Atika, This is incorrect. In this game there is no pure strategy equilibrium.
Here is the proof:
I will use the following terminology for explanation: I will call a voter "type i voter" if she supports candidate i.
And given a strategy profile s, n(i, s) denotes the number of voters voting for i in s.

Lemma 1: For type i voter, strategy of voting for candidate j ≠ i is strictly dominated by not voting.
Proof:
Clearly, voter can at least avoid voting costs by not voting. Thus, every type A voter will either choose to vote for A or will choose not to vote. And similarly a type B voter will either vote for B or none.

Lemma 2: Any strategy profile in which both candidates receive positive number of votes cannot be a Nash equilibrium i.e. s such that n(A, s) > 0 and n(B, s) > 0 is not a Nash equilibrium.
Proof:
Case 1: 0< n(A, s) < n(B, s): Consider a type A voter who choose to vote in s. Her payoff in strategy profile s is -11. If she does not vote, she gets -10. Hence, s is not a Nash equilibrium.
Case 2: 0< n(B, s) < n(A, s): Consider a type B voter who choose to vote in s. Her payoff in strategy profile s is -11. If she does not vote, she gets -10. Hence, s is not a Nash equilibrium.
Case 3: 0< n(B, s) = n(A, s): Consider a type A voter who choose not to vote in s. Her payoff in strategy profile s is 0. If she votes, she gets 9. Hence, s is not a Nash equilibrium.
Thus, s such that n(A, s)> 0 and n(B, s)>0 is not a Nash equilibrium.

Lemma 3: Any strategy profile in which any candidate receiving more than 1 vote cannot be a Nash equilibrium i.e. s such that n(A, s)> 1  or n(B, s) > 1 is not a Nash equilibrium.
Proof:
By Lemma 2, we just need to check these two cases:
Case 1: n(A, s) > 1 and n(B, s) = 0: Consider a type A voter who choose to vote in s. Her payoff in strategy profile s is 9. If she does not vote, she gets 10. Hence, s is not a Nash equilibrium.
Case 2: n(B, s) > 1 and n(A, s) = 0: Consider a type B voter who choose to vote in s. Her payoff in strategy profile s is 9. If she does not vote, she gets 10. Hence, s is not a Nash equilibrium.

Lemma 4: There is no pure strategy Nash equilibrium.
Proof:
By Lemma 2 and Lemma 3, we just need to analyse the following three cases:
Case 1: n(A, s) = 1 and n(B, s) = 0: Consider a type B voter who choose not to vote in s. Her payoff in strategy profile s is -10. If she votes, she gets -1. Hence, s is not a Nash equilibrium.
Case 2: n(A, s) = 0 and n(B, s) = 1: Consider a type A voter who choose not to vote in s. Her payoff in strategy profile s is -10. If she votes, she gets -1. Hence, s is not a Nash equilibrium.
Case 3: n(A, s) = 0 and n(B, s) = 0: Consider a type B voter who choose not to vote in s. Her payoff in strategy profile s is 0. If she votes, she gets 9. Hence, s is not a Nash equilibrium.

Hence, there is no Nash equilibrium in pure strategies.


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