Provide a game theoretic modelling and analysis for the relationship of interest rate decision by the central bank of Turkey and the valuationof Turkish lira.
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Provide a game theoretic modelling and analysis for the relationship of interest rate decision by the central bank of Turkey and the valuationof Turkish lira.
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- In the post lockdown scenario it is expected that with economic activity slowing down,impacting buying power of consumers, demand will shift towards smaller cars or low price carsand first time buyers. MarutiUdhyog Ltd.(MUL) is faced with a dilemma. If it retains its presentlevel of profit margin, it will continue to lose its market share and if it cuts down the price toretain the demand for its car and its market share it loses the profit volume. What in youropinion should be the objective of MUL.the question is attached as a photo and answer typed below. please help me show the calculations to support the answer the answer Administrator theorem equilibrium is an associate degree equilibrium conception relevant for dynamic games with incomplete info it’s a refinement of Nash equilibrium. The ways and beliefs are; the action rely on the history this is often almost like a sequent game and the belief could also be likelihood distribution over the nodes within the info set. Formally a belief system is associate degree assignment of likelihood of each node within the game such the total of possibilities in any info set. The ways and beliefs ought to satisfy the subsequent condition they're as follows; sequent rationality, every strategy ought to be optimum in expectation given the beliefs. Consistency, every belief ought to be updated per the ways and Bayes decree each path of zero likelihood of the equilibrium the beliefs will be arbitrary as this is the perfect Bayesian…India’s Tata Motors was moving forward with a strategy focused on small inexpensive cars, even though this was a highly competitive market segment, dominated by Japanese auto makers. The company’s aim was to design a small car that would be significantly cheaper to make and buy than any other model, and thus to satisfy India’s mass market demand for low – cost transportation. The result was the Nano, with a sales price of 100, 000 rupees (US$2,500), which was half the price of its closest competitor in India. Tata Motors achieved this by designing everything from scratch, deleting features that were taken for granted by other auto makers (for example air conditioning, power brakes, radios), using lightweight steel and an aluminium engine, and building in fuel efficiency. Being the part of such a large TATA group is itself a competitive advantage. This affiliation provides the company with the needed knowledge and technology resources for taking their business to various parts of the…
- A firm plans to expand its product line and faces a dilemma whether to build a small or largefacility to produce new products. If it builds a small facility and demand is low, the NPV afterdeducting for building costs will be four hundred thousand pesos. If demand is high, the firm caneither maintain the small facility or expand it. Expansion would have an NPV of four hundredfifty pesos while maintaining the small facility would have an NPV of fifty thousand pesos. If alarge facility is built and demand is high, the estimated NPV would be eight hundred thousandpesos. If demand turns out to be low, the NPV would be a loss of ten thousand. The probabilitythat the demand is high is estimated to be sixty percent.a. Analyze using a decision tree.b. Compute for EVPI.c. Determine the range over which each alternative would be best in terms of the valuewhen demand is low.HELP AND PLEASE ANSWER IN DETAIL FOR ALL PARTS! Please adhere to the Game/Payoff matrix!!! A department store is about to order deluxe, standard, and economy grade DVD players for next year's inventory. The state of the nation's economy (fate) during the year will be a factor on sales for that year. Records over the past 5 years show that if the economy is up, the store will net 4, 2, and 1million dollars, respectively, on sales of deluxe, standard, and economy grade models; if the economy is down, the company will net -2, -1 , and 4 million dollars, respectively, on sales of deluxe, standard, and economy grade models. Complete parts A through D below. A) Set up the payoff matrix for the problem. (With columns being the Economy and The dept. store as rows) B)Find the optimal strategies for both the company and fate (the economy). What is the value of the game? P= (This is the optimal strategy for the row player, the department store) Q=(The optimal strategy for the…Eunice, the industry analyst of H&M, wants to determine the propensity of Major Clothingcompanies toward risk. She was able to determine the utility distribution of H&M, Uniqloand Dickies. For H&M, If the expected payoff of a venture is a loss of 125,000, the utilityvalue is 0.00, if a loss of 75,000, the utility value is .2, if breakeven, the utility value is .5,if gain of 75,000 .8 and if gain of 125,000 utility value is 1. For Uniqlo, if loss of 125,000utility value is 0, if loss of 75,000 utility value is .1, breakeven is .4, if a gain of 75,000,utility value is .7 and if gain of 125,000 utility value is 1. For Dickies, if loss of 125,000,utility value is 0, if loss of 75,000, utility value is .3 breakeven is .6, if gain of 75,000, utilityvalue is .9 and gain of 125,000, utility value is 1. What is the propensity to risk of the threeinternet companies? Explain your graph.
- Given Q1 = 150 -3P1 + P2 + P3 Q2 = 180 +P1 - 4P2 + 2P3 Q3 = 200 +2P1 + P2 - 5P3 and TC =Q12 + Q1Q2 +2Q22 + Q2Q3 +Q32 + Q1Q3 Find the inversedemand function P = f(Q) and use Cramer’s rule to solve for thecritical value Q1. (Answer in two decimal places.) Use Cramer’s rule tosolve for the critical value Q2. (Answer in two decimalplaces.) Use Cramer’s rule tosolve for the critical value Q3. (Answer in two decimalplaces.) Calculate the Hessian matrix. What is the value of|H3|? (Answer in two decimal places.) Based on the Hessian, what can you say about the profit? (Answer in one word. )An automobile industry has 5 players (A, B, C, D, E) with 20%, 10%, 30%, 20%, 20% share respectively. What is the Herfindahl Hirschman Index (HHI)? Select one: a) 10000 b) 2200 c) 20 d) 2500 e) 100The Federal Communications Commission (FCC) has hired you as a consultant to design an auction to sell wireless spectrum rights. The FCC indicates that its goal of using auctions to sell these spectrum rights is to generate revenue. Since most bidders are large telecommunications companies, you rationally surmise that all participants in the auction are risk neutral. Which auction type—first-price, second-price, English, or Dutch—would you recommend if all bidders value spectrum rights identically but have different estimates of the true underlying value of spectrum rights?
- The Federal Communications Commission (FCC) has hired you as a consultant to design an auction to sell wireless spectrum rights. The FCC indicates that its goal of using auctions to sell these spectrum rights is to generate revenue. Since most bidders are large telecommunications companies, you rationally surmise that all participants in the auction are risk neutral. Which auction type—first-price, second-price, English, or Dutch—would you recommend if all bidders value spectrum rights identically but have different estimates of the true underlying value of spectrum rights? Kindly give a brief one-page description as part of the assignment.The owners of a small manufacturing concern have hired a manager to run the company with the expectation that he will buy the company after five years. Compensation of the new vice president is a flat salary plus 75% of first $150,000 of profit, and then 10% of profit over $150,000. The purchase price for the company is set as 4½ times earnings (profit), computed as average annual profitability over the next five years. Does this contract align the incentives of the new vice president with the goals of the owners?Question Management of AG Travel and Tour has identified two groups of individuals thatwould be interested in the vacation package consisting of room and board and/orentertainment. The maximum amount that group 1 is willing to pay for room andboard is GHC 2500 and for entertainment is GHC 500. For group 2, the maximumamount they are willing to pay for room and board is GHC 1800 and forentertainment is GHC 750. Although AG Travel and Tour is not able to identifymembers of either group, it does know that each group values the components ofthe package differently. Assuming there are an equal number of members in eachgroup and that the total membership in each group is a single individual. If themarginal cost of providing the service (room and board and/or entertainment) toeach group is GHC 1000. i. How much will the hotel charge members of each group for the vacationpackage if it could identify the members in each group?ii. How much will the profit for AG Travel and Tour be? iii. Since AG…