Exercise 1 - Q1: Which of the following is NOT one of the potential outcomes of a rational game?

If Marcia likes Greg and Greg invites her, Marcia says yes.If Marcia likes Greg and Greg invites her, Greg gets a payoff of 10.If Marcia doesn't like Greg and Greg invites her, Marcia says no.If Marcia doesn't like Greg and Greg invites her, Greg gets a payoff of 8.

Exercise 1 - Q2: What are Greg's expected payoffs?

If Greg invites Marcia, Greg's expected payoff is 8.5; if Greg does not invite Marcia, Greg's expected payoff is 3.If Greg invites Marcia, Greg's expected payoff is 4; if Greg does not invite Marcia, Greg's expected payoff is 3.If Greg invites Marcia, Greg's expected payoff is 8.5; if Greg does not invite Marcia, Greg's expected payoff is 4.If Greg invites Marcia, Greg's expected payoff is 2; if Greg does not invite Marcia, Greg's expected payoff is 3.75.

Exercise 2 - Q1: Given the symmetric strategy profile n.2, which of the following statements is wrong regarding a bidder's expected payoffs?

When a bidder's valuation is 5, her expected payoff is 0.2.When a bidder's valuation is 7, her expected payoff is 0.45.When a bidder's valuation is 10, her expected payoff is 0.85.A bidder's overall expected payoff is 0.5.

Exercise 2 - Q2: Now suppose that bidder A still follows strategy profile 2, while bidder B chooses a different strategy. Which of the following statements is wrong regarding bidder B's expected payoffs?

When bidder B's valuation is 5, her expected payoff is 0 if she chooses a bid smaller than 4.When bidder B's valuation is 5, her expected payoff is smaller or equal to zero if she chooses a bid larger than 4.When bidder B's valuation is 7, her expected payoff is 0 if she chooses a bid smaller than 6.When bidder B's valuation is 7, her expected payoff is smaller or equal to zero if she chooses a bid larger than 6.