PRINCIPLES OF MICROECONOMICS LOOSE LEAF
PRINCIPLES OF MICROECONOMICS LOOSE LEAF
12th Edition
ISBN: 9780134081083
Author: CASE
Publisher: PEARSON
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Chapter 22, Problem 3.1P
To determine

Identify the statistically significant survey.

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The mayor of Green City is considering whether to institute a Covid vaccine mandate for public employees. The fire chief opposes vaccination, and has threatened to resign if a mandate is instituted.  The mayor believes that instituting a mandate is critical to getting Covid under control, and thus not instituting the mandate would costs the city -50 utility.  However, the fire chief is critical to maintaining public safety.  If the fire chief resigns, it would cost the city 75 utility.  The fire chief believes a mandate would be an invasion of his personal freedom, costing him 20 utility.  The mandate only impacts the fire chief if he does not resign.  However, resigning his job as fire chief would cost him 40 utility.  Draw this game.  Identify how many subgames it contains.  Then, solve the game to find all subgame perfect Nash equilibria.
For questions 44 and 45, consider the following: The town of Fenerbahce has hired world-class econometricians to investigate their criminal justice system. The researchers report an interesting finding. People who were previously detected and punished by law enforcers gain a better understanding of the functioning of the law enforcement system, and are better able to exploit laws designed to protect defendants against the state. Thus, people who have been detected and punished before are better able to avoid detection and punishment. In particular, they report the following facts: The offense of jay-walking causes social harm of $100. A person who has never been punished for jaywalking before faces a 0.5 probability of being detected while jaywalking. A person who has been punished before for jaywalking faces a probability of 0.25 of being detected while jaywalking. The town wants to implement optimal punishment schemes. It is well known that everyone in Fenerbahce is risk-neutral…
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