What is the equilibrium of the game below? Winery 1 High End Cheap Wine Winery 2 Winery 2 High End High End Cheap Win Cheap Wine (10, 5) (30, 20) (20, 40) (40, 34 a. (High End, (Cheap, High End) b. (Cheap, (High End, High End) Oc (Cheap, (High End, Cheap) Od. (High End, (High End, Cheap)
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- Game Theory Question A non-profit firm is on a local community online donation platform for a community event it wants to hold (only community members can donate via the website). The event will be held only if the non-profit firm collects $20,000 total from members of the community. Each member values the event at $500. Suppose that there are 100 community members. Community members can only donate by purchasing a lottery ticket from the firm. Each ticket costs $200 and only one ticket can be purchased per member. The proceeds will be collected by the firm. The lottery winner gets a premier meal at a local restaurant that's worth $100. Remember, the firm keeps all the donated money. If the amount of donations is less than $20,000, then the firm returns the donated money to the community members (since there'll be no event held but the lottery winner still gets to eat that fancy meal). If the donations sum up to $20,000, the community event will take place. What are the Nash…Exercise 7: The facility location game. Our example is a game in which two firms compete through their choice of locations. Suppose that two firms A and B are each planning to open a store in one of six towns located along six consecutive exits on a highway. We can represent the arrangement of these towns using a six-node graph as in Figure 1 Now, based on leasing agreements, Firm 1 has the option of opening its store in any of towns 1, 3, or 5, while Firm 2 has the option of opening its store in any of towns 2, 4, or 6. These decisions will be executed simultaneously. Once the two stores are opened, customers from the towns will go to the store that is closer to them. So for example, if Firm A open its store in town 3 and Firm B opens its store in town 2, then the store in town 2 will attract customers from 1 and 2, while the store in town 3 will attract customers from 3, 4, 5, and 6. If we assume that the towns contain an equal number of customers, and that payoffs are directly…Which of the following gambles is “unfair”? a. A game that promises to pay you $1 if a coin comes up head and cost you $1 if a coin comes up tail, with no entry fee. b. A game that promises to pay you $10 if a coin comes up head and cost you $1 if a coin comes up tail, with no entry fee. c. A game that promises to pay you $10 if a coin comes up head and cost you $1 if a coin comes up tail, with an entry fee of $4.50 for the right to play. d. All of the above.
- Solve Both Questions!2. Do we depict the equilibrium of a game in pay-offs or strategies in Game theory? 3- 3. What is meant by the phrase, "Best Response of a player"? in Game Theory?5 WHILE USING GAME THEORY METHOD EXPLAİN CLİMATE CHANGE STRATEGIES PLAYERS PAYOFFS AND OUTCOMES IN 200 WORDSExercise 6.1Suppose that two airlines decide to collude. Analyse the game between these two companies. Suppose that each of them can charge for tickets a high price or a low price. If one of them charges 100 euros, it gets few profits if the other also charges 100 euros and high profits if the other charges 200 euros. On the other hand, if the company charges 200 euros, it obtains very little profit if the other charges 100 euros and an average profit if the other also charges 200 euros. a) Represent the matrix of results of this game. b) What is the Nash equilibrium in this game? Explain your answer. c) Is there an outcome that would be better than the Nash equilibrium for the two airlines? How could it be achieved? Who would lose out if it were reached?
- Game Theory I am trying to assign numbers (theoretical)to a game im making. Its about Tipping. Its based on 3 different efforts a server has showed Can you assign numbers to each of these. This is all made up so you can use whatever values they just need to be in regard to the other values. Thanks. I was thinking to start on high effort Tip could be +10 and no tip could be -10 Best and worst scenario. You do high effort service and get tipped and high effort with no tip. ThanksAnswer all the questions, show all the working. Consider the following game in normal form. Not cooperate Cooperate Not cooperate 20,20 50,0 Cooperate 0,50 40,40 What is Nash equilibrium? Is it efficient? Why? What needs to be complied with so that the players would like to cooperate? What happens when one of the players does not cooperate? Why? Define trigger strategy. Calculate the discount factor (δ) that would make both players decide to cooperate.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?
- QUESTION 1: Game theory a) What is the pure strategy Nash equilibrium outcome if there is one? b) Is this a socially optimal outcome? If not, which outcome is preferred? c) Do all three solution approaches for simultaneous games work independently (not together)? If not, which do not? d) Draw the game as a game tree (extensive form). e) Switch the payoffs in cells (A, A) and (D, D). What is the pure strategy Nash equilibrium outcome if there is one?Consider the following game in normal form. Not cooperate Cooperate Not cooperate 20,20 50,0 Cooperate 0,50 40,40 What is Nash equilibrium? Is it efficient? Why? What needs to be complied with so that the players would like to cooperate? What happens when one of the players does not cooperate? Why? Define trigger strategy. Calculate the discount factor (δ) that would make both players decide to cooperate.Game Theory. Elaborate an example of a mixed strategy, includes explanations of the development of the solution. Please be as clear as possible.
