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What is the discount factor in bargaining games without impatience?
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- Is the solution to the prisoner’s dilemma game a Nash equilibrium? Why? The solution to the prisoner’s dilemma game is a Nash equilibrium because no player can improve his or her payoff by changing strategy unilaterally. The solution to the prisoner’s dilemma game is not a Nash equilibrium because players do not end up in the best combination for both. The solution to the prisoner’s dilemma game is not a Nash equilibrium because both players can improve their payoffs by cooperating. The solution to the prisoner’s dilemma game is a Nash equilibrium because it is a noncooperative game in which both players have to expect that the other is purely selfish.Consider a bargaining situation where the pie can be allocated only in three ways: The first player gets all the pie, the second player gets all the pie, the pie is split equally among the two players. Both players have constant and identical discount rates δ. For each of the three possible allocations of the pie, find out for which values of δ there is a a subgame perfect equilibrium such that this allocation can be offered and accepted in the first round of the game of alternating offers. (Note: the subgame perfect equilibria with a certain property that only applies to a part of the game, namely that a specific allocation is proposed and accepted in round 1 of the game.) The approach starts at some period ?+1 in the future (under the restriction that only these three divisions are possible). You make an assumption about what could be an equilibrium outcome in this period. This allows you to explain what are best replies of the player in period ? (again, under the restriction that…What is prisoners dilemma? and how it works? Explain in detail
- The following represents the potential outcomes of your first salary negotiation after graduation: Assuming this is a sequential move game with the employer moving first, indicate the most likely outcome. Does the ability to move first give the employer an advantage? If so, how? As the employee, is there anything you could do to realize a higher payoff?In dynamic game theory, a situation where a player is using non-credible threat is an examples of subgame perfect Nash equilibrium, explain why or why not?Which player (if any) has a dominate strategy? What is the Nash Equilibrium of this game? Does the game satisfy the definition of prisoner dilemma?
- Does each individual in a prisoner’s dilemma benefit more from cooperation or from pursuing selfinterest? Explain brieflyIn the manager-employee game (work-shirk)? What happens if one of them plays a pure strategy? Please explain.Describe the prisoner's dilemma Define Nash equilibrium. What is the Nash equilibrium of the prisoner's dilemma? Name two circumstances in which rational actors playing the prisoner's dilemma game can reasonably be expected not to end up in the Nash Equilibrium