Page 1 Consider the following game. Player 1 has three actions: A, B, C. Player 2 has three actions: a, b.c. Payoffs are as follows: a 0,3 8,5 4,2 2,6 6,3 4,5 C 4,4 0,3 0,3 (Quesiton is also availbe in pdf format here: Question.pdf) Which of the following is TRUE? А. cis strongly dominated by a for player 2 В. Player 1 has a strongly dominated strategy O C. Player 2 has no weakly dominated strategy B.
Q: 3. The fictional criminal group known as the Sons of Anarchy, as a recognizable organization with cr...
A: Crime fiction has influenced a wide range of Australian fiction. Some are pure fiction, while others...
Q: Suppose you are given the following information: Qs =100+3P Qd =400–2P where Qs is the quantity supp...
A: Disclaimer: You have posted three parts, viz, (a), (b) and (c). Part (c) is not part of the main que...
Q: 4. Chilli Chilli has been developing a product, the Chillalarm, which can be fitted to freezers ...
A: We assume the company makes all sell in the beginning of the year. So the discounting starts from th...
Q: A monopoly firm produces men's collared dress shirts. Its brand is strong and differentiated. The co...
A: Those with less elastic demand pay a higher price for the shirts. Option d is the right answer.Becau...
Q: Consider a closed economy, where wages are sticky in the short run. The consumption function is C = ...
A: Since you have asked a multi-part question and according to the policy, we can only solve the first ...
Q: If negative externalities exist in the production of a product, it causes causes_ of the product
A: Negative Externality : Negative Externality exists when the production or consumption of a good or s...
Q: In U-Shaped Average Total Cost Curve above Section 11.4 exhibit 2, why does AFC continue to fall eve...
A: Average fixed cost (AFC) refers to the total fixed cost (TFC) per unit of output AFC = TFC/Q Where Q...
Q: The graph depicts the average total cost curve for a perfectly competitive firm. At the long-run equ...
A: In a perfectly competitive market, price is constant at all levels of output so it is equal to margi...
Q: The total cost (in dollars) to produce qq units of a good is given by the function: C(q)=7.6q+44000...
A:
Q: Case: As part of the most recent collective bargaining agreement with employees, an employer must of...
A: Proposal-1:- Due to the inclusion of pre-existing condition coverage, this proposal may entail adver...
Q: 3. Suppose the individual has a utility function In(c) where c is consumption and In(-) is the natur...
A: Lottery A: Prize = 1.25 units with probability 0.5 Prize = 0.75 units with probability 0.5 Lottery ...
Q: Individuals will prefer to fully insure against a potential adverse event if A. individuals are ris...
A: In a market, people have individual differences and different behaviour to make an exchange based on...
Q: Explain the straightforward path on how a bill becomes a law in our state.
A: Bill A bill is basically a draft of a legislative proposal that, if approved by Parliament's both ho...
Q: There are about 2500 leather wallets available in a country. When the price of these wallets is rais...
A: We will form the demand and supply equations using the equation of a line. Suppose, there are two po...
Q: An example of a perfectly competitive industry is: A. cell phone service B. the automobile industry...
A: In a perfectly competitive market, there are many buyers and sellers. Firms do not have any control ...
Q: 3. Suppose the individual has a utility function In(c) where c is consumption and In(-) is the natur...
A: Expected Utility: It is the weighted average of all possible outcomes under various circumstances. ...
Q: 9. The MC curve cuts the AVC and ATC curves at A. O The falling part of each B. O Different points C...
A: Business can be of various types. For example in diesel business, there is diesel production and the...
Q: Marx writes that, in order to understand surplus-value, we have to divide the workday into two parts...
A: Surplus value is defined in Marxian economics as the difference between the amount raised via the sa...
Q: Which of the following is not an assumption of the IS/LM model? Short-run model ...
A: IS-LM is a model of Keynesian macroeconomic that shows how the market for monetary merchandise (IS) ...
Q: how can a policy protect our environment?
A: To find : How policy protect our environment.
Q: Determine the strategies that the player can follow by applying the rule of thumb to reduce the matr...
A: Given information Player are 2 Player A and Player B Game matrix is 4x3 Player A has 4 strategy and ...
Q: Six hundred pesos is deposited each year into a savings account that pays 6 % compounded continuousl...
A: Given Yearly deposit A =600 pesos Rate of interest =6% compounded continuously Time (n)=8 years We ...
Q: You are paying a series of five constant-dollar (or real-dollar) uniform payments of $2,295.9 beginn...
A: Given that, Uniform payment of $2295.9 The inflation rate is 32.99% The market interest rate is also...
Q: Suppose countries A and B produce and consume (assuming convex preferences) apples and bananas using...
A: Given:Labor force=100 Unit cost for apples in country A=2 Unit cost for apples in country B =1 unit...
Q: choose a global event from the past 100 years such as pandemics, recessions and technological booms ...
A: our world economy is interrelated to each other country regarding trade as we call it international ...
Q: If MPC=0.75 (and there are no income taxes) and if government purchases fall by 45, then the IS curv...
A: According to the question, MPC is 0.75 and government purchases fall by 45 which means ∆G=-45. Gover...
Q: 1) Suppose that inflation is currently 7% and inflationary expectations are also 7%. Assume that int...
A: Basics:- Actual inflation = Expected inflation + Demand pull inflation + Cost (Supply) pull inflatio...
Q: Q3 Suppose that the average hourly wage of manufacturing workers decreases. Assuming the market for ...
A: Perfectly competitive market: - it is a market condition where there are many buyers and many seller...
Q: Consider an economy with a Cobb-Douglas production function. Assume that the labour income share par...
A: Introduction Its answer is b) the economy is in steady state so output growth is zero. investment ra...
Q: Banks are classified into different categories for efficient regulation of the central monetary a...
A: Banks are classified into different categories in order to meet different demands such as business d...
Q: The Canadian Consumer Price Index was approximately 98.5 (base year 1992) at the beginning of 1991. ...
A: Given: The CPI at the beginning of 1991 is = 98.5 The annual inflation rate is = 3% To Find: The ind...
Q: kindly explain factor vouch insurance startup factors demand and supply of the company?
A: Vouch insurance Vouch Insurance is a brand-new kind of startup insurance platform.Vouch's totally di...
Q: Figure 10.1 shows demand and costs for a monopolistic competitor. When a new firm enters the market,...
A: Monopolistic competition is a type of imperfect competition such that there are many producers compe...
Q: If the economy depicted below decides that unemployment is too great and is at point L, the monetary...
A: In the given graph, aggregate supply curve is given with three aggregate demand curves of an economy...
Q: The following are the advantages of financial intermediaries, except: A. Provide guaranteed returns...
A: Financial Intermediaries:- Financial intermediaries function as go-betweens for financial transactio...
Q: How might a rapid rise in inflation harm you? How might a rapid rise in inflation help you? In ans...
A: Inflation refers to a rise in the prices of goods and services in an economy during a year. This lea...
Q: Rising health care costs O stretch government budgets, especially as the proportion of the populatio...
A: Disclaimer “Since you have asked multiple questions, we will solve the first question for you. If yo...
Q: Problem 08-10 (algo) The manager of a local monopoly estimates that the elasticity of demand for its...
A: The profit is maximized where the MR=MC.
Q: The equation for the IS curve is (note that α corresponds to alpha as defined in the lecture notes) ...
A: IS Curve stands for investment and savings. It shows negative relationship between interest rate and...
Q: The MC curve cuts the AVC and ATC curves at
A: To find : Marginal curve where cuts average curve
Q: QUESTION 11 Which of the following statements is false? OA A change in the supply of an item will ca...
A: The curve that depicts various quantities of goods and services being supplied at various levels of ...
Q: The purchase of a new car requires P100,000 down payment and the balance to be paid at P300,000 afte...
A: The formula for the present worth is, PV=FV(1+i)n Here, PV is the present value FV is the future val...
Q: There is a desirable good, the number of units of which is determined stochastically—either 1 or 2 u...
A: Given, Two Players : Individual 1 and Individual 2 A Desirable good- 1 or 2 units are available. In...
Q: why is it not realistic for a PPF curve to be straight?
A: PPF or Production Possibility Frontier is a locus of all the combinations of two goods that an econo...
Q: Which of the following statements is true? According to Okun's law: Select one or more: O a. unemplo...
A: Okun's Law: Okun's Law explains the relationship between output growth and change in the unemploymen...
Q: . The traditional economic (the Neoclassical view) approach to behavior suggests that: A. employees...
A: Neoclassical economic theory proposes a set of axioms that lead to choices that are unaffected by so...
Q: Consider three consumers indexed by i ={1,2,3} with the following demand functions for a pu good G: ...
A:
Q: In the short run if a perfectly competitive firm finds itself operating at a loss, it will
A: To find : For a perfect competitive firm in short run if it find itself operating loss what will hap...
Q: What is the most important decision a perfectly competitive firm must make to maximize profit? what ...
A: In a perfectly competitive market, there are many buyers and sellers. The good produced is homogeneo...
Q: Vhich of the following statements about labour productivity (Y/L), also known as the average product...
A: Labour Productivity : Labour productivity measures the hourly output of a country's economy. It is ...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Consider the location game we covered in Lecture 3. Now assume there arethree players (vendors). As we assumed in the lecture, consumers in each area choosethe closest vendor and if there are multiple closest vendors then these vendors receiveequal share of consumers in the area. Notice Si = {1, 2, 3, ...., 9} for i = 1, 2, 3. Here aresome examples of payoffs: u1(1, 1, 1) = 3, u1(1, 1, 9) = u2(1, 1, 9) = 2.25, u3(1, 1, 9) =4.5, u1(1, 5, 9) = u3(1, 5, 9) = 2.5 and u2(1, 5, 9) = 4. (a) Is s′1 = 1 strictly dominated by s′′1 = 2 for player 1?(b) Is s′1 = 1 weakly dominated by s′′1 = 2 for player 1?(c) Can you find a Nash equilibrium in pure strategies?on 8.1 Consider the following game: Player 1 A C D 7,6 5,8 0,0 Player 2 E 5,8 7,6 1, 1 F 0,0 1,1 4,4 a. Find the pure-strategy Nash equilibria (if any). b. Find the mixed-strategy Nash equilibrium in which each player randomizes over just the first two actions. c. Compute players' expected payoffs in the equilibria found in parts (a) and (b). d. Draw the extensive form for this game.14. Company A and Company B are each telecommunications manufacturers. Both companies manufacture the same products, and they make their decisions based on the other's actions. Both companies are considering opening retail outlets to increase their profits. The payoff matrix shows the profits of the companies in millions of dollars if they choose to open retail outlets. The government imposes a new $5 million tax to open retail outlets. What is the expected outcome of the new payoff matrix, given the tax? The Nash equilibrium is for Company A to not open retail outlets and for Company B to open retail outlets. The Nash equilibrium is for Company A to open retail outlets and for Company B to not open retail outlets. The Nash equilibrium is for both Company A and Company B to open retail outlets. The Nash equilibrium is for both Company A and Company B to not open retail outlets. There is no Nash equilibrium after the change given in the scenario.…
- Consider the “trust game” discussed in class. The first player starts with a $100 endowment and chooses how much to give to the second player. The gift triples in value (i.e. if $20 is given, the second player receives $60). The second player then chooses how much to give back. The first player receives exactly how much is returned (i.e. if $40 is returned, the first player receives $40). The Nash equilibrium of the game is: Group of answer choices: -First player gives $100, second player returns nothing. -First player gives $50, second player returns $50. -First player gives $100, second player returns $300. -There is no Nash equilibrium of this game. -First player gives nothing, second player returns nothing.Consider the bargaining problem of splitting a pie of size 1 with utility u(x1) = x1 for player 1 and v(x2) = 2x2 − x22 for player 2, where x1 and x2 denote the share of the pie for player 1 and 2 respectively. a) Consider the bargaining problem of the two players. Find the utility possibility frontier S. b) What is the Nash bargaining solution for this problem (i.e., on which division of the pie (?₁,?₂) will players agree), if the disagreement outcome (the utilities players obtain in case of disagreement) is d1 = d2 = 0? c) What is the Nash bargaining solution if the disagreement outcome is any d1 and d2 in S?5) Three legislators are set to vote on a bill to raise the salary of legislators. The majority wins, so all three will receive the raise if at least two of them vote in favor of the bill. The raise is valued at R by each legislator. Voting in favor of the bill comes with political backlash from constituents, though, even if the bill fails. Let C be the cost of backlash for anyone voting in favor of the bill. Finally, suppose that 0 < C < R. There are four possible payoffs for each legislator: 0: if they vote against the bill and at least one other legislator votes against it (so the bill fails) R: if they vote against the bill and the others vote for the bill (so the bill passes) -C: if they vote for the bill and no one else votes for the bill (so the bill fails) R-C: if they vote for the bill and at least one other legislator votes for it (so the bill passes). The three legislators are named X, Y, and Z, and voting happens sequentially and orally. So X announces their vote (to…
- TRADE. Consider a bilateral trade model with two-sided asymmetric information. The buyer's value is private information to the buyer, vB and the seller's value vs is private information to the seller. (a)Derive the linear Bayes Nash Equilibrium in a double auction. (b)Assume that the seller can credibly disclose their valuae. What is your intuition, would he want to commit to such transparency?Consider the following coordination game: Player 2P1 Comedy Show Concert Comedy Show 11,5 0,0 Concert 0,0 2,2 a. Find the Nash equilibrium(s) for this game.b. Now assume Player 1 and Player 2 have distributional preferences. Specifically, both people greatly care about the utility of the other person. In fact, they place equal weight on their outcome and the other person’soutcome, ρ = σ = ½. Find the Nash equilibrium(s) with these utilitarianpreferences.c. Now consider the case where Player1 and Player2 do not like each other. Specifically, any positive outcome for the other person is viewed as anegative outcome for the individual, ρ = σ = -1. Find the Nashequilibrium(s) with these envious preferences.Consider the following two-player game.First, player 1 selects a number x≥0. Player 2 observes x. Then, simultaneously andindependently, player 1 selects a number y1 and player 2 selects a number y2, at which pointthe game ends.Player 1’s payoff is: u1(x; y1) = −3y21 + 6y1y2 −13x2 + 8xPlayer 2’s payoff is: u2(y2) = 6y1y2 −6y22 + 12xy2Draw the game tree of this game and identify its Subgame Perfect Nash Equilibrium.
- A strategy for player 1 is a value for x1 from the set X. Similarly, a strategyfor player 2 is a value for x2 from the set X. Player 1’s payoff is V1(x1, x2) =5 + x1 - 2x2 and player 2’s payoff is V2(x1, x2) = 5 + x2 - 2x1.a. Assume that X is the interval of real numbers from 1 to 4 (including 1and 4). (Note that this is much more than integers and includes such numbers as 2.648 and 1.00037). Derive all Nash equilibria.b. Now assume that the game is played infinitely often and a player’s payoff is the present value of his stream of single-period payoffs, where dis the discount factor.(i) Assume that X is composed of only two values: 2 and 3; thus, aplayer can choose 2 or 3, but no other value. Consider the followingsymmetric strategy profile: In period 1, a player chooses the value 2. In period t(≥2), a player chooses the value 2. In period a player chooses the value 2 if both players chose 2 in all previous periods; otherwise, she chooses the value 3. Derive conditions which ensure…Consider the extensive form game portrayed below. The top number at aterminal node is player 1’s payoff, the middle number is player 2’s payoff,and the bottom number is player 3’s payoff.a. Derive the strategy set for each player. (Note: If you do not want to listall of the strategies, you can provide a general description of a player’sstrategy, give an example, and state how many strategies are in thestrategy set.)b. Derive all subgame perfect Nash equilibria. c. Derive a Nash equilibrium that is not a SPNE, and explain why it isnot a SPNE.Question 1 Consider a first-price sealed bid auction of a single object with two biddersj = 1,2 and no reservation price. Bidder 1′s valuation is v1 = 2, and bidder 2′s valuation isv1 = 5. Both v1 and v2 are known to both bidders. Bids must be in whole dollar amounts.In the event of a tie, the object is awarded by a flip of a fair coin.(a) Find an equilibrium of this game.(b) Is the allocation of your answer to (a) efficient?