Xo Xo O X1 X2 X3 Xmax $ Xo ABDE A CF B What outcome can we expect to prevail in after bargaining occurs? A D D E B GHIJKL D ABCDEF E X₂ X₁ H X₂ L X3 H MAC MB XMAX Abatement MAC How much is the victim willing to pay to reach this post-bargain level? MB XMAX Abatement
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- Suppose Andy is now allowed to be noisy if he chooses, but Barb has a liability right to collect damages for any harms she bears from the noise. Note that if she has earplugs, she does not bear any harms from the noise, so she will only be paid if Andy operates noisily and she does not wear earplugs (she is not paid any damages for wearing earplugs). In the absence of bargaining, Barb will a. do nothing b. wear earplugs Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Two athletes of equal ability are competing for aprize of $10,000. Each is deciding whether to takea dangerous performance-enhancing drug. If oneathlete takes the drug and the other does not, the onewho takes the drug wins the prize. If both or neithertake the drug, they tie and split the prize. Taking thedrug imposes health risks that are equivalent to a lossof X dollars.QuickQuiz Answers1. d 2. c 3. a 4. d 5. c 6. b 7. d 8. ba. Draw a 2×2 payoff matrix describing the decisionsthe athletes face.b. For what X is taking the drug the Nashequilibrium?c. Does making the drug safer (that is, lowering X)make the athletes better or worse off? Explain.Only typed answer and don't use chatgpt Management and a labor union are bargaining over how much of a $50 surplus to give to the union. The $50 is divisible up to one cent. The players have one shot to reach an agreement. Management has the ability to announce what it wants first, and then the labor union can accept or reject the offer. Both players get zero if the total amounts asked for exceed $50. Which of the following is true? A There are multiple Nash equilibria. B ($25, $25) is a Nash equilibrium. C A Nash equilibrium is also a perfect equilibrium. D There are multiple Nash equilibria, and ($25, $25) is a Nash equilibrium.
- Coasian bargaining is easier when a large number of parties are involved. is it true or falseThe Dean of a College is looking for a tenured professor to teachin the Core Curriculum. Monetary incentives are needed to get someoneinterested, but how much? The Dean decides to use an auction to do thejob. Two professors, equally qualiÖed, applied for the position. The twoprofessors are invited to covertly submit their bids to the Dean. The Deanwill give the position to the professor who submits the lower bid (if thereis a tie, the job is assigned randomly). The professor who gets the job willbe paid his/her own bid. Each professorís reservation value for teachingthe course is his/her private information. It is common knowledge thattheir reservation values are independently and uniformly distributed over[0;100]: So if a professor with a reservation value of 60 wins with a bid of50, 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 Bayesian Nash…We have studied the 2-period alternating offer bargaining model with constant costs of delay. In other words, in that model, there were two agents 1 and 2 , each with a constant delay cost c1 and c2 respectively. That is the cost to each player i of each period of delay is ci . Now consider the 3 -period version of the model. In this model there are 3 periods t = 0, 1, 2 . As before the cost of each additional period of delay is ci to player i, i.e., if the period t = 2 proposal z = (z1, z2) is accepted then player i’s payoff is zi − 2ci and if the period t = 2 proposal is rejected, then it is (−2c1, −2c2). Assume c1 > c2. Find a SPE of the game?
- 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?Do you think integrative approach to negotiation is more effective that distributive approach?Choice under uncertainty. Consider a coin-toss game in which the player gets $30 if they win, and $5 if they lose. The probability of winning is 50%. (a) Alan is (just) willing to pay $15 to play this game. What is Alan’s attitude to risk? Show your work. (b) Assume a market with many identical Alans, who are all forced to pay $15 to play this coin-toss game. An insurer offers an insurance policy to protect the Alans from the risk. What would be the fair (zero profit) premium on this policy? can you help me for par (b) plase?
- Choice under uncertainty. Consider a coin-toss game in which the player gets $30 if they win, and $5 if they lose. The probability of winning is 50%. (a) Alan is (just) willing to pay $15 to play this game. What is Alan’s attitude to risk? Show your work.(b) Assume a market with many identical Alans, who are all forced to pay $15 to play this coin-toss game. An insurer offers an insurance policy to protect the Alans from the risk. What would be the fair (zero profit) premium on this policy? i need help with question B please.explaining the strategic view of bargaining. Present a numerical example and discuss how each player would make decisions.Show how education can signal the worker’s innate ability in the labor market. What is a pooled equilibrium? What is a perfectly separating signaling equilibrium?
