ec home work
jinnniubaobao
problem_set_2_hints.docxProblem Set 2 Hints
Summer 2017
H. Li
1. b. Look at the trees in the “Recursive Dynamic Programming slides.” Your graph will not need to be as large as the graph on page 3, but it should be a little bit more extensive than the graph on page 7 (since the game is more complicated). At least show the paths to three states; winning the game, losing the game, and returning to the state of batting with no one on base.
e. See slide 9, “Recursive Dynamic Programming” slides.
2. a., b. Look at game theory reading (Dixit and Skeath document).
c., d. Slides 14-23 of “Simultaneous Games” notes.
3. b. See “Solving for the mixing probability” under the “Mixed Strategy” lesson.
4. Make sure that you understand the concept of mixed strategies before you attempt this problem. Then look at the “Empirical tests of mixed strategy” slides. Think about what Larry should be doing, and see if what he is doing now differs significantly (in a statistical sense) from what he should be doing.
5. Keep in mind that this graph shows the value of possessing the ball on the yard line in question. If your opponent has the ball on a particular yard line, it will be the opposite of the value shown here.
