Poison Gas. Mainland and Island are rival nations, often at war, and both can pr
ID: 1163329 • Letter: P
Question
Poison Gas. Mainland and Island are rival nations, often at war, and both can produce and deploy poison gas on the battlefield. In any battle, the payoffs to using gas are as in Table 3.E4.
a. Are there any dominant strategies in this game? What?
b.Has this game a dominant strategy equilibrium?
c.What would be the cooperative solution in this game?
d.Is this game a social dilemma? Why?
e.Historically, poison gas was used in World War I, but not in World War II, although Germany opposed France and Britain in the second war as it had in the first. The consensus explanation was that if one side were to use gas in a battle, the other side would retaliate with gas in subsequent battles, with the result that the first user would nevertheless be worse off as a result. Discuss the limitations of the Dominant Strategy Equilibrium in the analysis of social dilemmas in the light of this contrast.
Please show the work!
Table 3.E4. Gas Island gas no Mainlandgas-8,-83,-10 no 10,30,0Explanation / Answer
Ans a)
Mainland has Dominant strategy as Gas because payoff from gas is always higher irresepective of response from Island
Similarly island has the same Gas strategy as Dominant strategy
Ans b)
As both players has dominant strategy as Gas they have dominant strategy equilibrium as (Gas,Gas)
Ans c)
We can see that if both have played "no" as strategy then they will have bettered off nash equilibrium and hence the cooperastive solution be (No,No)
Ans d)
Yes this game is social dilemma because they would have bettered by choosing pareto optimal strategy if cooperated and both players would be better off but they think about others ad hence the worse payoff therefore to avoid worse scenarios they choose inbetween when no communcaition or coordination is considered