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Explain the concepts below
- Repeated Game Strategy
- Mix Game Strategy
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- This is a Microeconomics problem. I need help for part (d). Two firms A and B operating in the same market must choose between a collude price and a cheat price. Answer the following questions in order. (a) Does Firm A have a dominant strategy? Explain your answer. (b) Does Firm B have a dominant strategy? Explain your answer. (c) Is there an equilibrium solution to the above game? (d) Is this equilibrium solution to the game the most "ideal" outcome for the players? Explain clearly why or why not.Game Theory. Elaborate an example of a mixed strategy, includes explanations of the development of the solution. Please be as clear as possible.10. Game theory terminology Select the term that best describes each definition listed in the following table. Definition Nash Equilibrium Dominant Strategy Collusion Tit-for-tat Strategy Payoff Matrix/Table Prisoners' Dilemma Game A set of strategies (one for each player) in which each player's strategy is the best option for that player, given the chosen strategy of the player's opponents A strategy in which a player cooperates until the other player defects and then defects until the other player cooperates again A case in which individually rational behaviour leads to a jointly inefficient outcome A player's best choice, if it exists, regardless of his or her opponent's strategy
- 1. Find pure strategy Nash equilibrium and find the outcome, that will be played in cooperation. Explain clearly.Game theory terminology Select the term that best describes each definition listed in the following table. Definition Nash Equilibrium Dominant Strategy Collusion Tit-for-tat Strategy Payoff Matrix Prisoners' Dilemma Game A strategy in which a player cooperates until the other player defects and then defects until the other player cooperates again The event that occurs when agents in a game form an agreement about which strategies to implement A player's best choice, if it exists, regardless of his or her opponent's strategy A case in which individually rational behavior leads to a jointly inefficient outcomeGame theory TITAN is the dominant steel producer in the US, but its global competitor GIANTS has gained some sizeable market share in the US recently by expanding into US via acquisitions. TITAN currently has a 40,000-ton capacity plant and GIANTS has two plants - a 16,000-ton plant and a 4,000-ton plant. Suppose these are the only two producers of steel in the US. The current market price is $5M per 1000 tons, and variable costs are $2M per 1000 tons. Assume fixed costs are negligible relative to variable costs, and the quality of steel produced across plants is identical. At current market price there is significant overcapacity, so each firm only produces 50% of its total capacity, i.e. the production level for TITAN is 20,000 tons and that for GIANTS is 10,000 tons respectively. Marketing research had indicated that lowering the price to $4M per 1000 tons while the other firm maintained its price at $5M would shift half of the other firm’s demand to the firm with the lower price.…
- Subject: Manegerial economics & policy c) Which effect dominates, the price effect or the quality effect of a price change if demand isupward sloping? d) Why might demand be downward sloping in a market with imperfect information eventhough the market is otherwise perfectly competitive? e) Why are focal points important for noncooperative games?Game Theory Create a practical case of zero sum including the explanation in the development and explicitly showing the solution. Please be as clear as possible.Game theory. Explain Nash equilibrium in pure strategies elaborately with a case study/problem (first define it) covering everything under a single problem (handwritten).
- Explain and discuss game theory approach of modeling competition: a) What is the difference between the equilibrium in dominant strategies and Nash equilibrium? Show one game example in tabular (simple) form and the other in decision tree (extended) form to support your answer. b) In what circumstances players choose to follow maximin strategy? Support your answer with specific examples please.1.Draw the extensive form representation of this game. 2. Find a subgame perfect equilibrium (SPE) of this game. focus on pure-strategies only.Economists make use of the tools of Game Theory because: It helps to analyse interactions between humans It makes them better in playing card games It offers a better understanding of oligopolies It is highly mathematical a. All of the above are true b. (1) and (2) are true c. (1) and (3) are true d. (3) and (4) are true
