Q1. GAME THEORY: Colonel Blotto has three partitions through which to defend 2 mountain passes. His challenger also has three partitions. Blotto effectively defends a pass if as well as only if he distributes an equal or greater quantity of partitions to it as his opponent. Blotto wins if he successfully defends both passes, in addition to lose otherwise. Blotto pay is 0 if he loses and 1 if he wins. Illustrate the mixed Nash equilibrium of the game.

Q2. In 2003, when music downloading first took off, Universal Music slashed the prices of CDs from an average of $21 to an average of $15. The company said that it expected the price cut to boost the quantity of CDs sold by 30%.