In an auction, the winning bidder often ends up as an overly optimistic loser because of O a. political pressure. b. asymmetric information. O c.a lack of perfect information. O d. a lack of common knowledge. O e. zero marginal costs.
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- Your company is bidding for mineral rights to a tract of land for drilling oil. Based on your geological survey reports, your valuation of the mineral rights is $38 million. You believe the distribution of bids will be uniform for the mineral rights, with a high value of $45 million and a low value of $20 million. In a second-price sealed-bid auction, how much should you for bid if there are 5 bidders? a. $41.40 Million O b. $45.00 Million Oc. $38.00 Million O d. $34.40 MillionIn your own words, and without using mathematical notation, provide an intuitive explanation of each of the following terms. a. A rationalizable strategy. b. A strategy in an extensive form game of perfect information. c. A Nash equilibrium in pure strategies. 20 S1. What is the expected value of playing this game ? a. The player repeatedly rolls a six - side d die until it comes up 6. b. When the die comes up 6 , the player receives a payoff, and the game ends. The player get s precise ly one payof f. c. The initial payoff is $6, and it increases by 20%. The f irst roll payoff is $6 ; the second roll payoff is $7.20 (1.2*$6) ; the third roll payoff is $8.64 (1.2*$7.20), and so on. What is the expected value of playing this game?
- Micro Nash game theory Consider the game matching pennies with an external option u for player 1. Suppose that u in ]0, 1[. a. Calculate in a very complete form the best response apps for each player. b. Give the set of Nash equilibria for the game. please I need a formal answer, not the one already posted.SAC Group Business Plan A Business Plan B What is the Nash equilibrium in this game? OA. $1,-$5000. OB. There is no Nash equilibrium. OC. $2, $2. OD. $1, $10. OE. $2,$0. IVY Corp Business Plan Y $1, $10 $2. $0 Business Plan Z $1.-$5.000 $2. $21. One time your company needs cash and plans to auction off subsidiaries to the highest bidder. Mention the type of auction that will maximize your company's revenue from the sale if:a. Bidder is neutral on risk and has independent personal judgment?b. Bidder is risk-neutral and has an affiliated valuation estimate? 2. A manager will use a business strategy so that in the long run the company's profits will increase. The entry of competitors has an impact on the unfavorable profitability of the company. To deal with the entry of new competitors, a manager can consider the limit pricing strategy.a. Explain what is meant by limit pricing!b. How can the limit pricing strategy be effective? 3. It is known that the demand function of "I like" brand dry food companies in the monopolistic competition market is P = 100 - 2Q, while the cost function is TC = 5 + 2Q. in this case P = price level, Q = output level, and TC = total cost.a. Determine the combination of prices and production levels…
- Advertising can be a signal of qualitya. if advertising is freely available to all firms.b. if the benefit of attracting customers is greaterfor firms with better products.c. only if consumers are irrationally attracted toproducts they see advertised.d. only if the content of the ads contains credibleinformation about the products.The above table shows the payoffs that either Darrin or Rob receive depending on whether they choose a high or a low price strategy. The predicted outcome is A. Darrin - Low Price; Rob - Low Price. B. Darrin - Low Price; Rob - High Price. C. Darrin - High Price; Rob - Low Price. D. Darrin - High Price; Rob - High Price.4. A uniform price auction is an auction where all the winners pay the same price. A k-th price auction is an auction where the price paid by the winner(s) is the k-th highest bid. We run a 3rd price, uniform price auction for two items, so the winners are the two bidders with the highest bid. There are 4 bidders, A, B, C and D, and they bid respectively $10, $9, $8 and $12. (A) Bidders A and B win the auction and pay $9. (B) Bidders A and D win the auction and pay $9. (C) Bidders B and D win the auction and pay $10. (D) Bidders B and C win the auction and pay $8.
- 0,0 not 4, 10 b advertise Good seller Select all true statements. n Nature Consumer -1,0 Bad seller b -1,-5 advertise n not -6,0 0,0 a. There is a separating equilibrium in this game in which only the good seller advertises. b. There is a separating equilibrium in this game in which only the bad seller advertises. c. There is no separating equilibrium in this game....is one of the terms of pay off and risks in Game theory. Select one: a. Low profit b. High profit c. Low price d. Current priceMicro Nash game theory Consider the game matching pennies with an external option u for player 1. Suppose that u in ]0, 1[. H T H. 1, -1 -1,1 1, -1 T -1,1 й, 0 й, 0 a. Calculate the best response apps for each player. b. Give the set of Nash equilibria for the game.