Firm B Q=5 Q=6 Q=5 (24, 24) (10, 30) Firm A Q=6 (30, 10) (19, 19) This table shows a game played between two firms, Firm A and Firm B. In this game each firm must decide how much output (Q) to produce: 5 units or 6 units. The profit for each firm is given in the table as (Profit for Firm A, Profit for Firm B). Refer to Table. The dominant strategy For Firm A is to produce 5 units and the dominant strategy for Firm B is to produce 6 units. 5 units and the dominant strategy for Firm B is to produce 5 units. 6 units and the dominant strategy for Firm B is to produce 5 units. 6 units and the dominant strategy for Firm B is to produce 6 units.
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- A clothing store and a jeweler are located side by side in a shopping mall. If the clothing store spend C dollars on advertising and the jeweler spends J dollars on advertising, then the profits of the clothing store will be (36 + J )C - 2C 2 and the profits of the jeweler will be (30 + C )J - 2J 2. The clothing store gets to choose its amount of advertising first, knowing that the jeweler will find out how much the clothing store advertised before deciding how much to spend. The amount spent by the clothing store will be Group of answer choices $17. $34. $51. $8.50. $25.50.Q56 A Nash equilibrium is an outcome... a. Achieved by cooperation between players in the game. b. That is achieved by collusion where no party has an incentive to change their behaviour. c. Where each player's strategy depends on the behaviour of its opponents. d. That is achieved when players in the game have jointly maximized profits and divided those profits according to market share of each player. e. Where each player's best strategy is to maintain its present behaviour given the present behaviour of the other players.Two partners start a business. Each has two possible strategies, spend full time or secretly take a second job and spend only part time on the business. Any profits that the business makes will be split equally between the two partners, regardless of whether they work full time or part time for the business. If a partner takes a second job, he will earn $20,000 from this job plus his share of profits from the business. If he spends full time on the business, his only source of income is his share of profits from this business. If both partners spend full time on the business, total profits will be $200,000. If one partner spends full time on the business and the other takes a second job, the business profits will be $80,000. If both partners take second job, the total business profits are $20,000. a) This game has no pure strategy Nash equilibria, but has a mixed strategy equilibrium. b) This game has two Nash equilibria, one in which each partner has an income of $100,000 and one in…
- The mixed stratergy nash equalibrium consists of : the probability of firm A selecting October is 0.692 and probability of firm A selecting December is 0.309. The probability of firm B selecting October is 0.5 and probability of firm selecting December is 0.5. In the equilibrium you calculated above, what is the probability that both consoles are released in October? In December? What are the expected payoffs of firm A and of firm B in equilibrium?When a famous painting becomes available for sale, it is often known which museum or collector will be the likely winner. Yet, the auctioneer actively woos representatives of other museums that have no chance of winning to attend anyway. Suppose a piece of art has recently become available for sale and will be auctioned off to the highest bidder, with the winner paying an amount equal to the second highest bid. Assume that most collectors know that Valerie places a value of $15,000 on the art piece and that she values this art piece more than any other collector. Suppose that if no one else shows up, Valerie simply bids $15,000/2=$7,500 and wins the piece of art. The expected price paid by Valerie, with no other bidders present, is $________.. Suppose the owner of the artwork manages to recruit another bidder, Antonio, to the auction. Antonio is known to value the art piece at $12,000. The expected price paid by Valerie, given the presence of the second bidder Antonio, is $_______. .Two employees witness fraud committed in their firm. Each has two pure strategies: to become a whistleblower and report a crime, or not to report a crime. Each employee gets a payoff of 1 if the crime is reported by someone (it does not matter if both or only one employee reports). However, reporting the crime is costly. An employee who reports has to pay the cost of reporting equal to 0.5-0.25*d, where d=1 if the other employee also reports, and d=0 otherwise. Suppose that employees simultaneously decide to report or not. There is a unique mixed strategy Nash equilibrium in this game where each employee reports with the same positive probability less than 1. What is the probability that the crime is reported by at least one employee in such an equilibrium? ________
- You and your partner are choosing how much effort to put towards a group project for a course . You both care about the quality of the project , which increases in both of your effort choices . But you both also pay a cost of effort . You are enjoying the course much more than your partner , so your cost of effort is lower . Where y and p denote the amount of effort put by you and your partner , respectively , • Your payoff is 60yp - y³ . • Your partner's payoff is 60yp - 8p³ . Decisions about effort provision are made simultaneously . Answer the following questions about the set of pure strategy Nash equilibria of this game . Please round to 3 decimal places where rounding is needed . a ) In one pure strategy Nash equilibrium , you put more effort towards the project than your partner . In this Nash equilibrium , what is your effort level ? b ) In one pure strategy Nash equilibrium , you put the same level of effort towards the project as your partner . In this Nash equilibrium ,…Portsmouth Bank has foreclosed on a home mortgage and is selling the house at auction. There are three bidders for the house, Emily, Anna, and Olga. Portsmouth Bank does not know the willingness to pay of these three bidders for the house, but on the basis of its previous experience, the bank believes that each of these bidders has a probability of 1/3 of valuing it at $600,000, a probability of 1/3 of valuing at $500,000, and a probability of 1/3 of valuing it at $200,000. Portsmouth Bank believes that these probabilities are independent among buyers. If Portsmouth Bank sells the house by means of a second- bidder, sealed- bid auction (Vicktey auction), what will be the bank's expected revenue from the sale?Suppose a group of chess players gather and decide to rank themselves in "popularity". The popularity score of a player in the gathering is the number of other players in the gathering that player has previously played a game against. Prove that there will be ties in this score among the players in the gathering.
- Consider a game where there is a $2,520 prize if a player correctly guesses the outcome of a fair 7-sided die roll.Cindy will only play this game if there is a nonnegative expected value, even with the risk of losing the payment amount.What is the most Cindy would be willing to pay?There are N>=2 collectors who engage in the auction of an antique. The collectorshave a common valuation of the antique, denoted by v, which is known to all. Thecollectors make a simultaneous bid. Let pn denote the bid by collector n = 1,....,N. The one with the highest bid wins the antique. The winner receives payoff v-pi.The other(s) receive zero payoff. If more than one collectors make the same highestbid, then they have an equal chance of winning the item. Prove that: A) It is not a Nash Equilibrium (NE) if the highest bid is v and onlyone collector bids this price.(b) It is not a NE if the highest bid is less than v.(c) It is a NE that the highest bid is v and more than one collector bidsthis priceQ23. At what time is the game expected to stop? 1 2 3 4 5 6 after time 6 (when there are no more moves)