Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
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Question
Chapter 15, Problem 15.5IP
a)
To determine
A diagrammatic explanation of the simultaneous movement.
b)
To determine
The Nash equilibrium of the game.
c)
To determine
The long-run effect of the game.
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Students have asked these similar questions
Assume the following game situation:
If Player A plays UP and Player B plays LEFT then Player A gets $2 and Player B gets $4.
If Player A plays UP and Player B plays RIGHT then Player A gets $3 and Player B gets $6.
If Player A plays DOWN and Player B plays LEFT then Player A gets $5 and Player B gets $2.
If Player A plays DOWN and Player B plays RIGHT then Player A gets $1 and Player B gets $1.
What is the mixed strategy expected payout for Player B?
1
40/15
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two players, a and b are playing an asymmetrical game. there are n points on the game board. each turn player a targets a pair of points and player b says whether those two points are connected or unconnected. a can target each pair only once and the game ends when all pairs have been targeted. player b wins if a point is connected with all other points on the very last turn, while player a wins if any point is connected with all other points on any turn but the very last one or if no point is connected to all other points after the last turn. for what values of n does either player have a winning strategy?
Player 1 and Player 2 are trying to agree on how to split a pie of size 1 in a two-stage bargaining game. If no agreement is reached after the two stages are complete, the pie is split for them according to a pre-arranged agreement that gives Player 1 and Player 2 one-quarter and three quarters of the pie, respectively. In the first stage, Player 1 makes an offer (x1, x2), where x1 + x2 = 1. Player 2 can either accept this offer (at which point the game ends and the pie is split according to Player 1’s offer), or can make a counter-offer. When Player 2 makes a counter offer, Player 1 can either accept (in which case the pie is split according to Player 2’s offer) or can reject, in which case the pie is split according to the pre-arranged agreement. Both players have a discount factor d – getting dx in the first stage (after Player 1’s proposal) is as good as getting x in the second stage (after Player 2’s proposal).
a) In the last stage of the game, Player 1 will accept any offer…
Chapter 15 Solutions
Managerial Economics: A Problem Solving Approach
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