4. Consider the following static zero sum game G. Colin A C DE -4 3 -1 -1 2 4 4 C 1. -1 -1 -3 3. -1 5 (a) Draw the movement diagram for the game. (b) Explain why you would expect Colin's optimal strategy for G to involve at most four of his available pure strategies. 4223 B.

4. Consider the following static zero sum game G. Colin A C DE -4 3 -1 -1 2 4 4 C 1. -1 -1 -3 3. -1 5 (a) Draw the movement diagram for the game. (b) Explain why you would expect Colin's optimal strategy for G to involve at most four of his available pure strategies. 4223 B.

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter17: Oligopoly

Section: Chapter Questions

Problem 5PA

See similar textbooks

Related questions

Q: We will loosely model the petrol crisis the UK has recently experienced as a game. Start with a two-...

A: There are two players : Player 1 & 2 Strategy Set of player1 = Strategy Set of player 2 = { Nor...

Q: and lot in a city with a 10% sales tax. He has at most $88,000 to spend. In what price range should ...

A: given sales tax = 10 % David can most spend upto 88000 $ This means that the whatever it purchases, ...

Q: The price/demand function of a company is p= 42 – 0.001D and the cost function is 30D + 1200. Determ...

A: We know that at equilibrium level demand and supply for goods and services are equal at certain pric...

Q: 5.) A money today is P4000. If the discount rate is 7%. How much is the future worth? ANSWER: F = 43...

A: Since you have posted multiple questions, as per the guidelines we can solve only one question per s...

Q: Use the following graph: The graph below pertains to the supply of paper to colleges and universitie...

A: * ANSWER :- Based on the above information the answer is provided as below.

Q: Suppose that a consumer cannot vary hours of work as he or she chooses. In particular, he or she mus...

A: In a perfectly competitive market, one of the determinants of the equilibrium wage and quantity of l...

Q: Consider the market for laptop bags. Suppose the price of laptops decreases. This change has what ef...

A: Two goods are complements when they are used together

Q: In the graph, producer surplus is equal to 22 16 D $60 $140 $200 $280 20 2.

A: Producer surplus refers to the difference between willingness to accept and actual price of a good.

Q: You need P 4000 per year for four years to go to college. Your father invested P8000 in 7% account f...

A: At the birth of a child, the father invested P8000, we know that if we invest x(let) @ 7% then valu...

Q: 1. International expansion is one pathway for growth for established firms, particularly when their ...

A: When a business decides to enter the international market, it has a number of options. Cost, risk, a...

Q: Assuming that the economy shown in the figure below is in equilibrium, calculate the recessionary or...

A: In the above diagram, the potential GDP is achieved when the AD curve intersects the AS curve. In th...

Q: Suppose ATC (Q=500) = $300 per unit & ATC(Q=501) = $301 per unit, where Q denotes output level, ATC ...

A: GIVEN Suppose ATC (Q-500) = $300 per unit ATC(Q=501) = $301 per unit where Q denotes outout lev...

Q: Some economic historians have noted that during the period of the gold standard, gold discoveries we...

A: Economic historians are typically well positioned to answer similar concerns regarding contemporary ...

Q: The figure below represents the short-run curves for TK Ltd, a popular Chinese cuisine restaurant. A...

A: The above question is related to the concept of market structure. There are primarily two types of m...

Q: The perceived demand curve for the is Select the correct answer below: O perfectly competitive firm;...

A: Here We have to write about the perceived demand curve .

Q: Q: What approach did the government take regarding the econor nd business in the 1920's? elect one:

A: 1920s period was marked by the economic fluctuations throughout the world.

Q: Why is global trade important?

A: Global trade means trading( Export and import) goods and services between the nation's . Global ...

Q: The chart below gives the data necessary to make a Keynesian cross diagram. Assume that the tax rate...

A: National Income Ater tax Income Consumption I+G+X Minus Imports Aggregate Expenditure 100 ...

Q: Ruby loves dividing her free time between going to the movies and reading. She has 20 hours per week...

A: Given: Amount per week=60 Cost of going of movies=6 Cost of books=15

Q: Consider the following model for the production of refined oil: MPC = 100 + 0.7Q MEC = 0.3Q %3D MPB ...

A: In free competitive market, externality is not taken into account and for socially efficient quantit...

Q: i need help with the last 6 problems left blank - If 2012 is the base year, real GDP in 2011 was ...

A: Note: There are multiple sub parts of the question, hence we shall solve the first three for you, if...

Q: If a large country in the world trade instituted a large set of subsidies for its exports, this must...

A: Answer is given below

Q: 1-Consider two firms facing the demand curve P = 20 – 5Q. The firms' cost functions are MC1=MC2=10. ...

A: Cournot market occurs when output produced by firms is unknown and price is determined by combined o...

Q: Graphically, when is the balance of trade equal to zero? Multiple Choice When the rising IM line ...

A: Export (X) remains constant at each level of GDP level. Hence, the Export (X) curve is horizontal i...

Q: The figure shows the market for tires. According to the figure, the government collects per month in...

A: We can calculate the amount of revenue earned by the government by taxes with the following formula:...

Q: Country S and Country T are two similar countries with the same working population equal to 100. Fir...

A: Introduction Two countries S and T are given. and both the countries have same working population wh...

Q: Suppose that the production possibility frontier of the economy is given by C=100(h-l)-G. If the con...

A: If the consumer faces a tax on the labor income on leisure l. The slope of the budget constraint is,...

Q: Süb noint(s) possible Next question The graph shows the marginal social cost and the marginal privat...

A: External cost refers to the cost that is incurred due to externality. It affects the third party who...

Q: Is zero unemployment desirable? explain

A: >Unemployment can be categorized in three different ways: 1. Frictional Unemployment: This type o...

Q: Compare and contrast private and public goods. Explain how the characteristics of a public good lend...

A: Answer to the question is as follows:

Q: Economics - Game Theory & Business Strategy Inverse Market Demand for tires is P = 200 - .01Q We...

A: The extensive form of the game is, 1.Manufacturer sets Price X by solving: maxQ(100-0.01Q)Q-10Q 2. R...

Q: a.) what does unemployment mean economically and explain the types of Unemployment? b.) Explain Zer...

A: In economics, unemployment is one of the important concepts to study by the people as it affects the...

Q: Match the following items with the type of economy they relate to Free markets create the most wealt...

A: * ANSWER :- (2) Based on the above information the answer is provided as below.

Q: Explain expansionary and discretionary fiscal policy (300 words)

A: Fiscal policies define as the government's policy which is used to control the money supply in the e...

Q: Ann works for an organization that contracts with the state for services provided in an inpatient fa...

A: The answer is - None of the above.

Q: Vhat are the breakeven points and the range of profitability for below given Total profit general eq...

A: Profit is the difference between Total revenue and total cost . As we know each firm's objective is ...

Q: What are the different views of Advertising? Topic: Monopolistic Competition

A: Advertising is information about a company's product or operation distributed by the firm, usually t...

Q: 2

A: Consequences built into the CAC program command-and-control legislation provides no incentive to imp...

Q: The price/demand function of a company is p= 42 – 0.001D and the cost function is 30D + 1200. Determ...

A: Given; Demand function; p=42-0.001D Cost function; TC=30D+1200 1) Optimal demand and value:- TR=P×D ...

Q: Government spending increases from G1 to G2. Which of the following diagrams best represent the chan...

A: Picture A is the correct one. If Y=C+G. C=Y-G with h-l = 24 hrs or labor =0, Y=0, C=-G

Q: Which of the following situations would lead to actual inflation of 3%? O A. future inflation is 1%;...

A: Inflation is the decline of purchasing power of a given currency over time. A quantitative estimate ...

Q: There are two types of residents in the Maine cities of Kittery and York, wealthy retirees and middl...

A: Utility of wealthy : Uw = 20S0.5 + 8S Utility of Middle Class : Um = 40S0.5 + 5S Optimal demand / ...

Q: Explain the different channels used by BSP to transmit monetary policy. ( Interest rate, credit, ex...

A: BSP stands for Bangko ng philipinas is the central bank of Philippines. And it's obejctive to contr...

Q: 3. Howard consumes only two goods. An economist has collected the following data on Howard's consump...

A: Paul Anthony Samuelson, an American economist, introduced the concept of revealed preference in 1938...

Q: The budget function for the economy of Sunsville is T - G = -400 + 0.25Y. a) Suppose income is $4,0...

A: Given the budget function of Sunsville: T-G=-400+0.25Y ... (1) When the value of T-G is pos...

Q: Notice that the before-tax equilibrium price was 25. Compared to the price, in the after-tax equilib...

A: Tax incidence refers to the loss of welfare caused by the imposition of taxes . So , Consumer Surpl...

Q: Suppose the cross-price elasticity of apples with respect to the price of oranges is 0.4, and the pr...

A: Substitute goods are those goods which can be used in place for one another as the satisfied the sam...

Q: Explain the contributions of entrepreneurship in economic development

A: The entrepreneur is defined as someone who has the ability and desires to create, manage, and succee...

Q: You own a company selling wristwatches. This is its inverse demand equation: Q = 10 - (P/60) Part A:...

A: Price Elasticity of Demand The price elasticity of demand measures the responsiveness of change in t...

Q: Question 2 · Thanh decided to go to university. If Thanh goes to college, he will spend $80,000 on t...

A: Given; Thanh's tuition fees= $80000 Rental room cost= $15000 Cost of books= $4000 If he hadn't gone ...

Question

4. Consider the following static zero sum game G.
Colin
D E
A-4
1
3
1
4
1
-1
-1
D
3 -1
(a) Draw the movement diagram for the game.
(b) Explain why you would expect Colin's optimal strategy for G to involve at most
four of his available pure strategies.
143 5
4223

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Does each individual in a prisoners dilemma benefit more from cooperation or from pursuing self-interest? Explain briefly.
Sometimes oligopolies in the same industry are very different in size. Suppose we have a duopoly where one firm (Film A) is large and the other film (Film B) is small, as the prisoners dilemma box in Table 10.4 shows. Assuming that both films know the payoffs, what is the likely outcome in this case?
1. Consider the pricing game between firm 1 (row) and firm 2 (column) belowwhere each number represents the profits made by each firm.:Table 1: Pricing gameLow HighLow 288,288 360,216High 216,360 324,324 a) Point out the Nash equilibrium. Is this a unique Nash equilibrium?c) What type of commitment can firm 1 make to improve its pay-off?Can it be classified as a threat or promise? (Assume that the commitmentis credible.)d) How would you represent the game as a game tree with the option tocommit?2. Consider the signalling / production game with the order of play given below.Assuming that the signal is informative (i.e. education is sufficiently costly),how would you change the order of the game to make sure that poolingequilibriums are ruled out? Verbally motivate your answer.• Nature chooses ability of the workers a ∈ (H, L), ability is observed byworkers but not employers.• The worker choose an education level s ∈ (0, 1).• The employer offer contracts w(s).• The worker accepts or…
1. Find all subgame perfect nash equilibrium 2. Find a nash equilibrium that is not SPNE, and explain why it is not an SPNE.
(a) Compute the Nash Equilibrium in pure strategies of the game above. (b) Compute the subgame perfect Nash equilibrium.(c) Compute the perfect Bayesian euilibrium. (I need help with how to solve these questions in detail)
H7. Find all pure strategy Nash equilibria and for each one, state whether or not it is subgame perfect.
1.Draw the extensive form representation of this game. 2. Find a subgame perfect equilibrium (SPE) of this game. focus on pure-strategies only.
Pls help me solve below game theory question
1) What are the Nash equilibria? Which one is unreasonable/non-credible threat? 2) What are the subgame perfect Nash equilibria? Does SPNE concept eliminate the unreasonable Nash equilibrium?
6)Game Theory: The Prisoners’ Dilemma: Assume that the Wilson and Spalding athletic equipment companies are in a one-shot game for market share and profits, but that they have the option of choosing only one of two possible price strategies for basketballs: $20 or $80. Obviously if they choose different strategies, the firm with the lower price will win the entire market. The firms face the following payoff matrix (See Chap. 10). Wilson\ \Spalding Wilson $ 20 Price Wilson $ 80 Price Spalding $ 20 Price $ 400, $ 400 $ 1500, $ 0 Spalding $ 80 Price $ 0, $ 1500 $ 1000, $ 1000 What strategy will each firm choose? Why? Which strategy is dominant? Which strategy is preferred by each firm? What will be the outcome of the one-shot game? Where is the Nash equilibrium? Which outcome would be best for the two firms? What will happen if the game is repeated an infinite number of times?
12. Consider a game where each player picks a number from 0 to 60. The guess that is closest to half ofthe average of the chosen numbers wins a prize. If several peopleare equally close, then they share theprize. The game theory implies that (A) all players have dominant strategies to choose 0 (B) all players have dominant strategies to choose 30 (C) there is a Nash equilibrium where all players pick 0 (D) there is a Nash equilibrium where all players pick positive numbers 13. Behavioral data in such games suggests that (A) most subjects choose 0; (B) most subjects choose 30; (C) common answers include 30, 15, 7.5, and 0; (D) most subjects use randomization. Can you help me answer number 13 please?
Consider trade relations between the United States and Mexico. Assume that the leaders of the two countries believe the payoffs to alternative trade policies are shown in the image attached. a) What is the dominant strategy for the United States? For Mexico? Explain. b) Define Nash equilibrium. What is the Nash equilibrium for trade policy? c) In 1993, the U.S. Congress ratified the North American Free Trade Agreement, in which the United States and Mexico agreed to reduce trade barriers simultaneously. Do the perceived payoffs shown here justify this approach to trade policy? Explain.