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Explain:
Q) In the manager-employee game (work-shirk), why manager and employee would play a mixed strategy? What happens if one of them plays a pure strategy?
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- Q) Explain: In the manager-employee game (work-shirk), why manager and employee would play a mixed strategy? What happens if one of them plays a pure strategy? Note:- Solve it but not copy paste answer.In the manager-employee game (work-shirk)? What happens if one of them plays a pure strategy? Please explain.The following represents the potential outcomes of your first salary negotiation after graduation: Assuming this is a sequential move game with the employer moving first, indicate the most likely outcome. Does the ability to move first give the employer an advantage? If so, how? As the employee, is there anything you could do to realize a higher payoff?
- Most automobile companies in the United States between 1970 and 1990 knew that Toyota was able to create and capture advantage over its competitors because of the way it works with its suppliers. This is an example of _____. Path dependence Social complexity Social Capital Early mover advantageExplain the following In the manager-employee game (work-shirk), why manager and employee would play a mixed strategy? What happens if one of them plays a pure strategy? In two player’s dynamic games the player who moves second gets the advantage because we solve the game backwards. Explain why or why not? In dynamic game theory, a situation where a player is using non-credible threat is an examples of subgame perfect Nash equilibrium, explain why or why not?In a principal-agent problem, if the contract implies that the more risk-averse agent will bear less risk, we can say that this contract exhibits A.risk sharing is not optimal because the less risk-averse (or risk-neutral) agent should bear none of the risk. B.efficiency in risk-bearing. C.risk sharing is not optimal because risk-neutral agents should face no risk. D.risk sharing is not optimal because all risk should be transferred to the most risk-averse agent.
- Two players are bargaining over a three period bargaining model as discussed in class with player 1 making offers in rounds 1 and 3. Player 2 makes an offer in round 2 only. Each player has a common discount factor delta. The two players are bargaining to split $20. They have three time periods available to them for their bargaining game. At the end of round 3, if no agreement has been reached then player 1 receives $2 and player 2 receives $1 and the rest of the money is destroyed. Find the subgame perfect Nash equilibrium outcome in the finite horizon model in which the game ends after period 3.Two athletes of equal ability are competing for a prize of $12,000. Each is deciding whether to take a dangerous performance-enhancing drug. If one athlete takes the drug and the other does not, the one who takes the drug wins the prize. If both or neither take the drug, they tie and split the prize. Taking the drug imposes health risks that are equivalent to a loss of XX dollars. Complete the following payoff matrix describing the decisions the athletes face. Enter Player One's payoff on the left in each situation, Player Two's on the right. Player Two's Decision Take Drug Don't Take Drug Player One's Decision Take Drug , , Don't Take Drug , , True or False: The Nash equilibrium is taking the drug if X is greater than $6,000. True False Suppose there was a way to make the drug safer (that is, have lower XX). Which of the following statements are true about the effects of making the drug safer? Check all that…Which of the following statements is correct? a. In a principal-agent model, the party who proposes the contract is called the principal. b. In a principal-agent model, the party who decides whether or not to accept the contract and then performs under the terms of the contract (if accepted) is called the agent. c. In a principal-agent model, the agent is usually the party with asymmetric (or better) information. d. All of the above.
- Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator who chooses the best proposal (effectively giving one side or the other $2 million). Each side can choose to hire, or not hire, an expensive labor lawyer (at a cost of $400,000) who is effective at preparing the proposal in the best light. If neither hires lawyers or if both hire lawyers, each side can expect to win about half the time. If only one side hires a lawyer, it can expect to win three-quarters of the time. a. Diagram this simultaneous-move game. b. What is the Nash equilibrium of the game? c. Would the sides want to ban lawyers?In the sequential labor negotiation game:a. The ability to commit to a strategy gives your opponent an advantage.b. The ability to commit to a strategy is irrelevant.c. The ability to commit to a strategy gives you an advantage.d. Players should simply state their desire to commit to a strategy to obtain an advantage.First Mover Advantage Read the overview below and complete the activities that follow. When to make a strategic move is often as crucial as what move to make. Timing is especially important when first-mover advantages and disadvantages exist. Under certain conditions, being first to initiate a strategic move can have a high payoff in the form of a competitive advantage that later movers cannot dislodge. Moving first is no guarantee of success, however, since first movers also face some significant disadvantages. Indeed, there are circumstances in which it is more advantageous to be a fast follower or even a late mover. Because the timing of strategic moves can be consequential, it is important for company strategists to be aware of the nature of first-mover advantages and disadvantages and the conditions favoring each type of move. The goal of this exercise is for you to understand when being a first mover, a fast follower, or a late mover is most advantageous. Companies…
