Alice and Bob are playing a repeated game in which a certain stage game is played twice in succession. All behaviour in the first period is observed by both players before the second period commences. In the stage game, Alice has 4 pure strategies and Bob has 3 pure strategies. How many pure strategies does Bob have in the repeated game? (If necessary, use a calculator to compute this number.) 1728 531441 12 1594323 67108864 16777216 20736 3. 13
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- FINITE REPETITION Alice and Bob are playing a repeated game in which a certain stage game is played twice in succession. All behaviour in the first period is observed by both players before the second period commences. In the stage game, Alice has 3 pure strategies and Bob has 2 pure strategies. How many pure strategies does Bob have in the repeated game? (If necessary, use a calculator to compute this number.) 2 6 2187 3 36 64 7 729 128 216 Please do fast ASAP fastThere are N women that all share the same toilet every day in an office building. Each sits on the toilet to use it and must decide whether to put down toilet paper on top of the toilet or sit directly on it. The toilet is cleaned just once a day at a random time and no one knows when this is done. It takes time and effort to put down toilet paper so if she knew the toilet was clean (either because she is the first to use it after it was cleaned or if all previous users after it was last cleaned put down toilet paper) she would rather not put down toilet paper. However, if she believes the toilet is dirty she would rather put down toilet paper. a) Is this game best described as simultaneous or sequential move? b) How many equilibria are there in this game? c) Briefly provide a general description of the equilibria. Which equilibrium/equilibria provide the highest social payoff?For a group of 300 cars the numbers, classified by colour and country of manufacture, are shown in the table. Black Silver White Korea 33 34 35 Japan 23 9 24 America 16 25 34 Germany 19 16 32 One car is selected at random from this group. Find the probability that the selected car is a black or white car manufactured in Korea. not manufactured in Japan. is a white car, given that it was manufactured in America. Are the events ‘Korea’ and ‘Black’ Mutually Exclusive? Justify your response. Are the events ‘Korea’ and ‘Black’ Independent? Justify your response
- Each of the two players independently (and simultaneously with the other) decides whether to go to a play or a concert. Each would rather go with the other to a concert than with them to a play, but prefers this to not being together, in which case they don't care where they go alone. Additionally, each is indifferent between attending the play together and participating in a lottery where both go to the concert with a probability of ¾ and to different events with a probability of ¼. Describe the game in matrix form and find all its equilibria under the assumption that the players have von Neumann-Morgenstern preferences.If Firm 1 chooses to release the console in October with probability of 0.692 or December with a probability of 0.308, then Firm 2 is indifferent between choosing a release date. If Firm 2 released the console in October with probability of 0.50 or December with a probability of 0.50, then Firm 1 is indifferent between choosing a release date Suppose now that instead of choosing the release date at the same time, the firms choose sequentially (but still in advance). Firm A chooses its release date first, then firm B observes that date and chooses its own date. Thepayoffs are otherwise the same as above. Represent the game tree corresponding to this dynamic game.2. Kier, in The scenario, wants to determine how each of the 3 companies will decide on possible new investments. He was able to determine the new investment pay off for each of the three choices as well as the probability of the two types of market. If a company will launch product 1, it will gain 50,000 if the market is successful and lose 50,000 if the market is a failure. If a company will launch product 2, it will gain 25,000 if the market is successful and lose 25,000 if the market will fail. If a company decides not to launch any of the product, it will not be affected whether the market will succeed or fail. There is a 56% probability that the market will succeed and 44% probability that the market will fail. What will be the companies decision based on EMV? What is the decision of each company based on expected utility value?
- n people guess an integer between 1 and 100, and the winner is the player whose guess is closest to the mean of the guesses + 1 (ties broken randomly). Which of the following is an equilibrium: a) All announce 1. b) All announce 50. c) All announce 75. d) All announce 100Give typing answer with explanation and conclusion Suppose that the government must undertake an irreversible policy decision regarding the extent of air pollution regulation. The government is making this decision in a situation of uncertainty, however. In particular, there is some probability p that the benefits will remain the same as they are this year for all future years, but there is some probability 1 - p that benefits will be less in all future years. If we take into consideration the multiperiod aspects, should we err on the side of overregulation or underregulation, compared to what we would do in a single-period choice?Halsen, a marketing manager at Business X, has determined four possible strategies (X1, X2, X3, and X4) for promoting the Product X in London. She also knows that major competitor Product Y has 4 competitive actions (Y1, Y2, Y3 and Y4) it’s using to promote its product in London, too. Ms. Halsen has no previous knowledge that would allow her to determine probabilities of success of any of the four strategies. She formulates the matrix below to show the various Business X strategies and the resulting profit, depending on the competitive action used by Business Y. Determine which strategy Ms. Halsen should select using. Maximax, maximin or minimax regret? Business X Strategy Business Y Strategy Y1 Y2 Y3 Y4 X1 25 57 21 26 X2 17 29 20 34 X3 47 31 32 37 X4 35 27 30 35
- Halsen, a marketing manager at Business X, has determined four possible strategies (X1, X2, X3, and X4) for promoting the Product X in London. She also knows that major competitor Product Y has 4 competitive actions (Y1, Y2, Y3 and Y4) it’s using to promote its product in London, too. Ms. Halsen has no previous knowledge that would allow her to determine probabilities of success of any of the four strategies. She formulates the matrix below to show the various Business X strategies and the resulting profit, depending on the competitive action used by Business Y. Determine which strategy Ms. Halsen should select using, the following decision criteria. Please explain your answer for each strategy. a)Maximax; b)Maximin; c)Minimax regret Business X Strategy Business Y Strategy Y1 Y2 Y3 Y4 X1 25 57 21 26 X2 17 29 20 34 X3 47 31 32 37 X4 35 27 30 35Nn3 Suppose an incumbent monopoly firm currently earns a profit of $50,000 per period. A potential entrant could enter and make a profit of $15,000 per period while also lowering the incumbent’s profit to $20,000 per period. The monopoly firm could seek to engage in predatory pricing, which would lead to both firms earning a loss of $5,000 per period. (a) Is there a Nash Equilibrium in this game? If so, what is it? (b) Discuss how this game might play out in the real world?Cameron and Luke are playing a game called ”Race to 10”. Cameron goes first, and the players take turns choosing either 1 or 2. In each turn, they add the new number to a running total. The player who brings the total to exactly 10 wins the game. a) If both Cameron and Luke play optimally, who will win the game? Does the game have a first-mover advantage or a second-mover advantage? b) Suppose the game is modified to ”Race to 11” (i.e, the player who reaches 11 first wins). Who will win the game if both players play their optimal strategies? What if the game is ”Race to 12”? Does the result change? c) Consider the general version of the game called ”Race to n,” where n is a positive integer greater than 0. What are the conditions on n such that the game has a first mover advantage? What are the conditions on n such that the game has a second mover advantage?