Start with a simple set-up where the only participants in the corruption are the entrepreneur and the politician. The entrepreneur can either give a bribe to the politician or not. The bribe is a cost to the entrepreneur but if accepted by the politician it allows them to charge a monopoly price allowing a higher profit. After receiving a bribe, the politician can accept or reject it (but they cannot prove that they got the bribe). Explain the payoff conditions under which corruption occurs.
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Start with a simple set-up where the only participants in the corruption are the entrepreneur and the politician. The entrepreneur can either give a bribe to the politician or not. The bribe is a cost to the entrepreneur but if accepted by the politician it allows them to charge a
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- Consider the following 3-players version of the war of attrition. All three players can stay and compete to get a reward that has a value V. Each player pays 1 for each unit of time he/she stays. The winner that gets the reward is the last to quit. If several agents are the last to stay and they quit at exactly the same time, the reward is given to one of them following a fair lottery (each of them has the same probability to get the reward). In the first round, each player chooses her/his first exit time, 0 ≤ xi < ∞, and the player with the lowest value, xmin, pays xmin and quits. The other two players also pay xmin, but they continue to the second round. If several players try to quit together at xmin, only one player actually quits, and that player is determined in a lottery in which each of the players that try to quit at xmin have the same chance. The second round is the usual 2-players war of attrition, where each of the remaining two players chooses her/his exit time 0 ≤ yi…Jane and Bill are apprehended for a bank robbery. They are taken into separate rooms and questioned by the police about their involvement in the crime. The police tell them each that if they confess and turn the other person in, they will receive a lighter sentence. If they both confess, they will each be sentenced to 30 years. If neither confesses, they will each receive a 20-year sentence. If only one confesses, the confessor will receive 15 years and the one who stayed silent will receive 35 years. The table below represents the choices available to Jane and Bill. If Jane trusts Bill to stay silent, what should she do? If Jane thinks that Bill will confess, what should she do? Does Jane have a dominant strategy? A = Confess; B = Stay Silent. (Each results entry lists Janes sentence first (in years), and Bill's sentence second.) A A (30,30) A B (35,15) B A (15, 35) B B (20, 20)Jane and Bill are apprehended for a bank robbery. They are taken into separate rooms and questioned by the police about their involvement in the crime. The police tell them each that if they confess and turn the other person in, they will receive a lighter sentence. If they both confess, they will be each be sentenced to 30 years. If neither confesses, they will each receive a 20-year sentence. If only one confesses, the confessor will receive 15 years and the one who stayed silent will receive 35 years. Table 10.7 below represents the choices available to Jane and Bill. If Jane trusts Bill to stay silent, what should she do? If Jane thinks that Bill will confess, what should she do? Does Jane have a dominant strategy? Does Bill have a dominant strategy? A = Confess; B = Stay Silent. (Each results entry lists Jane’s sentence first (in years), and Bill's sentence second.)
- Jane and Bill are apprehended for a bank robbery. They are taken into separate rooms and questioned by the police about their involvement in the crime. The police tell them each that if they confess and turn the other person in, they will receive a lighter sentence. If they both confess, they will be each be sentenced to 30 years. If neither confesses, they will each receive a 20-year sentence. If only one confesses, the confessor will receive 15 years and the one who stayed silent will receive 35 years. The table below represents the choices available to Jane and Bill. If Jane trusts Bill to stay silent, what should she do? A = Confess; B = Stay Silent (Each results entry lists Janes's sentence first (in years), and Bill's sentence second.) Jane A B Bill A (30, 30) (15, 35) B (35, 15) (20, 20)Jane and Bill are apprehended for a bank robbery. They are taken into separate rooms and questioned by the police about their involvement in the crime. The police tell them each that if they confess and turn the other person in, they will receive a lighter sentence. If they both confess, they will be each be sentenced to 30 years. If neither confesses, they will each receive a 20-year sentence. If only one confesses, the confessor will receive 15 years and the one who stayed silent will receive 35 years. The table below represents the choices available to Jane and Bill. If Jane thinks that Bill will confess, what should she do? A = Confess; B = Stay Silent. (Each results entry lists Janes's sentence first (in years), and Bill's sentence second.)Jane and Bill are apprehended for a bank robbery. They are taken into separate rooms and questioned by the police about their involvement in the crime. The police tell them each that if they confess and turn the other person in, they will receive a lighter sentence. If they both confess, they will be each be sentenced to 30 years. If neither confesses, they will each receive a 20-year sentence. If only one confesses, the confessor will receive 15 years and the one who stayed silent will receive 35 years. The table below represents the choices available to Jane and Bill. Which criminal(s) have a dominate strategy to cheat? A = Confess; B = Stay Silent. (Each results entry lists Janes's sentence first (in years), and Bill's sentence second.) Jane A B Bill A (30, 30) (15, 35) B (35, 15) (20, 20) Question 3 options: Only Bill has a dominate strategy so he should cheat Only Jane has a dominate strategy so she should cheat Both Bill…
- In terms of general elections. A candidate will campaign and make promises. Voters have the option to vote for that candidate or another candidate. Why do voters often choose the wrong candidate? Use the principal-agent theoryRoger and Michelle like going out and enjoy each others’ company, but have different taste in entertainment. Michelle would like to go to a professional basketball game, while Roger prefers opera. If they fail to agree to go together to either the game or to the opera this Saturday night they will stay at home and be miserable. Both will be worse off than if they had gone together to either the game or the opera. (a) Construct a pay-off matrix for this game. (You can make up your own numbers for this problem; just make sure the numbers correctly depict the given situation.) (b) Find two Nash equilibria for this game. Explain why they are indeed Nash equilibria.The Dean of Columbia College is looking for a tenured professor to teach in the Core Curriculum. Monetary incentives are needed to get someone interested, but how much? The Dean decides to use an auction to do the job. Two professors, equally qualified, applied for the position. The two professors are invited to covertly submit their bids to the Dean. The Dean will give the position to the professor who submits the lower bid (if there is a tie, the job is assigned randomly). The professor who gets the job will be paid his/her own bid. Each professors reservation value for teaching the course is his/her private information. It is common knowledge that their reservation values are independently and uniformly distributed over [0; 100]: So if a professor with a reservation value of 60 wins with a bid of 50, his payoff is 60 50 = 10: (a) Find a Bayesian Nash equilibrium of the bidding game. (b) Suppose the two professorsíreservation values are 60 and 70, respec- tively. What are…
- The Dean of a College is looking for a tenured professor to teach in the Core Curriculum. Monetary incentives are needed to get someone interested, but how much? The Dean decides to use an auction to do the job. Two professors, equally qualified, applied for the position. The two professors are invited to covertly submit their bids to the Dean. The Dean will give the position to the professor who submits the lower bid (if there is a tie, the job is assigned randomly). The professor who gets the job will be paid his/her own bid. Each professorís reservation value for teaching the course is his/her private information. It is common knowledge that their reservation values are independently and uniformly distributed over [0;100]: So if a professor with a reservation value of 60 wins with a bid of 50, his payoff is 60- 50 = 10: (A) Find a Bayesian Nash equilibrium of the bidding game.(B) Suppose the two professorsíreservation values are 60 and 70, respectively. What are their bids in the…how is corporate oversight that results in deadly consequence different from murder ? why are the crimes of capitalism not considered as suchMegan and Martha own competing hair salons that are in the same neighborhood. They are both considering offering their clients discounts in order to increase business. The payoff matrix shows their yearly incomes in thousands of dollars if they offer and do not offer discounts to their customers. Martha Megan Discount No Discount Discount $50, $75 $75, $60 No Discount $35, $90 $70, $85 If both Megan and Martha did not discount, what would each earn in yearly income? Megan would earn $50,000; Martha would earn $75,000. Megan would earn $75,000; Martha would earn $60,000. Megan would earn $35,000; Martha would earn $90,000. Megan would earn $70,000; Martha would earn $85,000. Megan would earn $35,000; Martha would earn $85,000.