EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Chapter 17, Problem 17.5P
a.
To determine
To describe: the sub-game perfect equilibrium, if the players care only about the monetary payoffs.
B
To determine
To describe: The extensive form reflecting the new pay offs and sub-game perfect equilibrium.
c.
To determine
To describe: The extensive form reflecting the new pay offs and sub-game perfect equilibrium, if the players are perfectly altruistic.
d.
To determine
To describe: The extensive form reflecting the new pay offs and sub-game perfect equilibrium, if the players are perfectly selfless.
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Two players play the Ultimatum Game, in which they are to split $20. A purely rational agent would only reject an offer of …
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-$20
-$19
-$1
-$0
-$10
Refer to the Ultimatum Game in Figure 17.7. Recall that the payoffs are monetary payoffs. a. Suppose that players only care about monetary payoffs, with $1 = 1 util. Find the subgame– perfect equilibrium. b. Suppose that players are imperfectly altruistic. They receive 1 util for each dollar they earn but = util for each dollar the other player earns.Write down the extensive form reflecting the new payoffs. Find the subgame–perfect equilibrium. c. Suppose that players are perfectly altruistic, receiving 1 util for each dollar in the sum of their earnings. Write down the extensive form reflecting the new payoffs. Find the subgame– perfect equilibrium. d. Suppose that players are perfectly selfless, getting 1 util for each dollar the other player earns but no utility for their own earnings. Write down the extensive form reflecting the newpayoffs. Find the subgame–perfect equilibrium. Does player 1 end up choosing the outcome that player 2 prefers?…
Within a voluntary contribution game, the Nash equilibrium level of contribution is zero, but in experiments, it is often possible to sustain positive levels of contribution for a long period. How might we best explain this?
A) Participants are altruistic, and so value the payoff which other participants receive, benefiting (indirectly) from making a contribution.
B) Participants believe that if they make a contribution, then other participants will be more likely to make a contribution.
C) Participants in experiments believe that they have to make contributions in order to receive any payoff from their participation.
D) Participants have experience of working in situations in which cooperation can be sustained for mutual benefit and so have internalised a social norm of cooperation
Chapter 17 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 17.3 - Prob. 1MQCh. 17.3 - Prob. 2MQCh. 17.3 - Prob. 1.1MQCh. 17.3 - Prob. 1.2MQCh. 17.3 - Prob. 2.2MQCh. 17.3 - Prob. 1.3MQCh. 17.3 - Prob. 1TTACh. 17.3 - Prob. 2TTACh. 17.4 - Prob. 1TTACh. 17.4 - Prob. 2TTA
Ch. 17.4 - Prob. 1.1TTACh. 17.4 - Prob. 2.1TTACh. 17.4 - Prob. 1MQCh. 17.4 - Prob. 1.2TTACh. 17.4 - Prob. 2.2TTACh. 17.5 - Prob. 1MQCh. 17.5 - Prob. 2MQCh. 17.6 - Prob. 1TTACh. 17.6 - Prob. 2TTACh. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Prob. 3RQCh. 17 - Prob. 4RQCh. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 8RQCh. 17 - Prob. 9RQCh. 17 - Prob. 10RQCh. 17 - Prob. 17.1PCh. 17 - Prob. 17.2PCh. 17 - Prob. 17.3PCh. 17 - Prob. 17.4PCh. 17 - Prob. 17.5PCh. 17 - Prob. 17.6PCh. 17 - Prob. 17.7PCh. 17 - Prob. 17.8PCh. 17 - Prob. 17.9PCh. 17 - Prob. 17.10P
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