The experiment called the ultimatum game illustrates that people a. are overconfident in their own abilities. b. play the Nash equilibrium in strategic situations. c. care about fairness, even to their own detriment. d. make inconsistent decisions over t
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The experiment called the ultimatum game illustrates that people a. are overconfident in their own abilities. b. play the Nash equilibrium in strategic situations. c. care about fairness, even to their own detriment. d. make inconsistent decisions over t
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- Suppose Justine and Sarah are playing the ultimatum game. Justine is the proposer, has $140 to allocate, and Sarah can accept or reject the offer. Based on repeated experiments of the ultimatum game, what combination of payouts to Justine and Sarah is most likely to occur?.The primary research finding from studies of the “Ultimatum Game” is that when most people make economic decisions they … (choose one) -optimize. -consider the issue of fairness. -meliorate. -apply the availability heuristic.Two players play the Ultimatum Game, in which they are to split $20. A purely rational agent would only reject an offer of …
- The prisoner illustrates that rational, self-interested individuals will natuarally avoid the Nash equilibrium, because it is worse for both of them, true or false and why ?See the extensive form game in the image attached (the payoffs of player 1 are written on top and the payoffs of player 2 are on the bottom). a) Write this game in normal form (a player's strategy is a complete contingent plan that tells them what to play at each of their information sets) (b) Find all the Nash equilibria of the normal form game from part (a)You have just played rock, paper, scissors with your friend. You chose scissors and he chose paper, so you won. Is this a Nash equilibrium? Explain why or why not.
- there are 4,000 people that commute into a city each day. There is a local road that takes 30 minutes regardless of traffic. There is also a highways that takes 5 minutes when there is no traffic but where each additional driver adds .01 minute. a) Find the Nash Equilibria b) How many drivers should use the local road to maximize the societal benefit?If you take a maximin strategy A. you are ensuring that the other player gets the worst possible outcome. B. you are irrational according to economic definition. C. then both players are doing the best they can given the payoffs in the game. D. you are getting the best possible outcome given that the other player does the thing that's worst for you.Roger and Rafael play a game with the following rules. Roger is given $250 to divide between himself and Rafael. Rafael does not get to choose but he can reject Roger’s offer if he does not like it. If Rafael rejects, both get nothing. If Rafael accepts, both get the split that Roger decided. a. What is this game called? b. Find all Nash equilibria for this game. c. When this game is played in the real world, do the predictions in part 1b materialize? Why/why not? d. Are all Nash equilibria in part 1b Pareto Optimal? Explain
- Husband and wife want to spend Friday evening at cinema. They can watch the same movie, or different ones. They choose between two movies: “Heroes of War” and “Loving Stranger”. If they go to the same movie, they both feel satisfaction: in the case they watch “Heroes of War” husband’s satisfaction is higher, but in case they watch “Loving Stranger” wife’s satisfaction is higher. If they decide to watch different movies they feel no satisfaction at all. Help them to make the best decision (in terms of game theory – find Nash equilibrium).Construct the prisoners dillema game and determine Nash equilibriumIn the following 3-player game, the payoffs represent the number of years in jail. The equilibrium is ________ Group of answer choices Eric and Ned denies. Eric and Tim confess, but Ned denies. Eric confesses, Ned and Tim deny. Eric and Time deny, but Ned confesses