What is the prisoner's dilemma? Give an example of the prisoner's dilemma in a market. Also, discuss solutions to overcome the prisoner's dilemma and evaluate each solution critically.
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- Does each individual in a prisoners dilemma benefit more from cooperation or from pursuing self-interest? Explain briefly.What is prisoners dilemma? and how it works? Explain in detailThere are many real-world examples of the prisoner's dilemma. Climate change is one such example. In your writting, include the following: A. How is a country's decision whether to reduce carbon emissions in order to minimize climate change an example of a prisoner's dilemma? What is the optimal outcome? What is the likely outcome? Explain. B.Is there any way to get the optimal outcome? Why or why not?
- QUESTION: What is the Nash equilibrium usineg the payoff matrix below? Profit Payoff Matrix Frontier High Price Frontier Low Price United High Price United 50 Frontier 12 United 40 Frontier 15 United Low Price United 30 Frontier 0 United 25 Frontier 10 A. UNITED: HIGH FRONTIER: HIGH B. UNITED: HIGH FRONTIER: LOW C. UNITED: LOW FRONTIER: HIGH D. UNITED: LOW FRONTIER: LOW E. THERE IS NO NASH EQUILIBRIUM.Consider a game where each player picks a number from 0 to 60. The guess that is closest to half of the average of the chosen numbers wins a prize. If several people are equally close, then they share the prize. The game theory implies that (A) all players have dominant strategies to choose 0 (B) all players have dominant strategies to choose 30 (C) there is a Nash equilibrium where all players pick 0 (D) there is a Nash equilibrium where all players pick positive numbers Behavioral data in such games suggests that (A) most subjects choose 0; (B) most subjects choose 30;(C) common answers include 30, 15, 7.5, and 0; (D) most subjects use randomization.Describe an original social dilemma you observe in the real world -- i.e. a situation in which no one has an incentive to change what they're doing, but everyone would be better off if everyone changed what they were doing. Try to create two tables to present your dilemma as a 2×2 game. Your first table should be descriptive, Your second table should be a payoff matrix showing the payoffs for both players in each of the four situations Using your payoff matrix, describe the Nash equilibrium and the mutually preferred outcome.
- Prisoner's dilemma refers to Question 34Select one: a. how cooperation beween players leads to everyone losing. b. how cooperation can be difficult to maintain, even when all players would win. c. how consumers can maximize their surplus d. how self-interest generates higher profits.Consider a game between 2 payers (Ann and Bill) where each chooses between 3 actions (Up, Middle and Down). 1) Create a payoff matrix that reflects this. 2) Fill in payoff numbers that makes this game a Prisoner's Dilemma. 3) Explain why your game is a Prisoner's Dilemma.How are the concepts of game theory applied to Uber’s market?
- Define the term "game theory" in context of economics. Can you please provide it in detail. Thankyou!Imagine that two firms in two different countries want to bring a new product tomarket. Due to economies of scale, if both firms do this, they will both lose £50million. But if only one firm does this, it will gain £300 million.(a) What is the best strategy for firm A, if firm B has not yet entered the market, andwhy?(b) Illustrate this with a game theory diagram, showing appropriate payouts.(c) What is the welfare-maximising strategy for a government, and why?Describe the Nash equilibrium/a and the mutually-preferred outcome. Finally, consider how people are sometimes able to resolve this social dilemma in the real world. Clearly explain how this method is successful in moving the players to a socially optimal outcome.
