In an extensive form game, player A moves first, by choosing Invest or Not Invest. Player B moves next by selecting Disclose or Not Disclose. If A chooses Invest and B. chooses Disclose, A gets 10 and B gets 6. If A chooses Invest and B selects Not Disclose, then A gets 12 and B gets X. If A chooses Not Invest, then A gets 5 and B. gets 8 when B chooses Disclose, but if B chooses Not Disclose, then A gets Y and B gets 15. In the SPNE, A receives payoff 10 and B gets 6. This implies that X is and that Y is. 8:8 8; 12 4;8 4:12
Q: A total of 280 observations of Bob Ramos, an assembly-line worker, were made over a 40-hour work…
A: The z-score, also called the standard score, is a measurement of the number of standard deviations…
Q: Cyber Novelties Cyber Novelties is a direct sells company that sells small gadgets over the…
A: Given in the proposal that, $75,000 annually and $0.05 per unit for extra promotion, will lead to…
Q: assume the equilibrium price in a free market for an office table is R320 and equilibrium quantity…
A: The demand curve graphically represents the number of goods a consumer is willing and able to…
Q: 2. The demand for a commodity is given by Q = 90 - 0.3P. 2.1. Calculate the price elasticity of…
A: Elasticity refers to the degree of responsiveness of a variable (e.g. quantity demanded, quantity…
Q: Figure 7-2 r Refer to Figure 7-2. With a quadratic production with fixed capital Q=A+BL+CL² and the…
A: A mathematical relationship that depicts the level of output that can be produced from a set of…
Q: (a) Find a as a function of w. How does a change with wealth? Explain the intuition. (b) Another…
A: An investor who wants to divide their capital among several investment assets is faced with a…
Q: t of fiscal and monetary policy on government spending in Zimbabwe
A: Monetary policy: It refers to a policy in which the central bank of that country stabilizes the…
Q: Assume that at the end of year 0 you invested $100,000 in an investment fund. Since then the annual…
A: Given that, $100,000 are invested at the end of year zero, the returns for next 3 years are 15%,…
Q: Underground Sandwiches, a sandwich shop, has the following marginal product curve (labeled MP) for…
A: Marginal physical product (MPP) of labor measures the change in the total physical product (TPP) (or…
Q: (a) Describe the strategy that will cost you the least amount of money. (b) What is the minimum…
A: Game Theory : Game theory deals with interactive decision making, where outcome of each players…
Q: FRED 4,000 3.600 Billions of Dollars 3,200 2.800 2,400 2,000 1,600 1.200 800 400 0 -Personal…
A: Personal consumption spending refers to the measurement of expenditure made by consumers on all…
Q: Effect of fiscal and monetary policy on interest rate in zimbabwe
A: Central banks capitalize on interest rates as an essential vehicle for influencing the economy.…
Q: 1. Which of the following represents the firm's short-run condition for shutting down? a. shut down…
A: In perfect competition, There exists a large number of buyers and sellers. The firm produces where…
Q: The Federal Reserve System is responsible for tracking the amounts of M1 and M2 and prepares a…
A: The Federal Reserve system is the central bank of the United States. The money supply is defined as…
Q: The six most populous countries in the world: a. all achieved per capita economic growth between…
A: The six most populous countries in the world are Brazil, Indonesia, the United States, Pakistan,…
Q: QUESTION 3 Social rate of return is when the estimated rates of return go primarily to private…
A: Social rate of return: The return on investment that includes both the private benefits and the…
Q: What discount rate would ensure a sustainable harvest is set to Maximum Sustainable Yield? a. The…
A: Sustainable Yield is the highest amount of a renewable natural resource that can be harvested over…
Q: QUESTION 27 When withdrawals are greater than injections, then O a. injections will rise and…
A: In modern circular flow of income there are three injections and three withdrawals. Three injections…
Q: Question 2 (3,2) P2 (1,-1) P1 (0, 1) What is the Nash equilibrium of the game? * (a) (B; C, F) * (b)…
A: A state of a game where each player's strategy is the best reaction to the other players'…
Q: The backward-bending supply of labour curve is based on consideration of income and substitution…
A: The labour-leisure is a trade off that is encountered by the labor for choosing between working or…
Q: The Competitive Equilibrium. TC = 1600 + 4Q². Consider a competitive firm with the cost functic a.…
A: TC = 1600 + 4Q2
Q: If Bean Bruuer advertises, Hatte Latte makes a higher profit if it chooses If Bean Bruuer doesn't…
A: A market structure in which only two firms dominate the market for a particular product or service…
Q: When we set a = 0.05 for a hypothesis test, we are setting O the probability of reaching the wrong…
A: Hypothesis is a proposed statement about the relationship between two variables (or more) which is…
Q: Choose the "If two goods are complements, their O a. Cross-price elasticity, positive O b.…
A: The cross-price elasticity of demand measures the responsiveness of change in demand of one good to…
Q: ab by most governments, since a) To achieve the goal of full employment b) To achieve the twin goals…
A: Fiscal policy: It refers to a policy which is used by the government to achieve their predetermined…
Q: INR Ltd’s earnings per share next year is expected to be $2.10 and this is expected to grow at 5%…
A: Present value is a financial term that refers to the current value of a future sum of money,…
Q: The figure on the right shows the average monthly flows (in millions) between employment,…
A: Unemployment refers to a situation where people who are willing and able to work and actively…
Q: Briefly explain the role played by banks between savers and borrowers and how the economy benefits…
A: Banks are financial institutions that accept deposits from savers and lend out funds to borrowers.…
Q: a. Derive the General Equilibrium simultaneous equation for economy Z. Further comment on the…
A: First, let's rewrite the consumption function as: C = C0 + C1(Y - T - tY) = C0 + C1(1 - t)Y - C1T…
Q: List two advantages a command-and-control policy has over a pollution tax policy. (ii) List two…
A: Externality refers to the situation of a person engaging in activities that may influence the…
Q: ✓ An engineering firm recently conducted a study to determine its benefit and cost structure. The…
A: Net Benefit is the difference between Benefit B(Y) and Cost C(Y). Optimal level is where Marginal…
Q: effect of fiscal and monetary policy on investment in Zimbabwe
A: The term fiscal policy describes how the government uses spending, taxes, and borrowing to affect…
Q: Calculate the participation rate
A: Total population = 40 Working age population = 32 Discouraged workers = 4 Full-time employed = 15…
Q: According to the graph, if the government does not intervene in the market for gasoline, the…
A: According to the graph, if the government does not intervene in the market for gasoline, the…
Q: 4. Consider now that 100 individuals (type A) have the utility function U = x2/3y¹/3 and the other…
A: The utility function for part (3) is not given and hence cannot be solved For part (4)
Q: An appliance manufacturing business requires both machines and labor to produce finished products.…
A: An isoquant curve depicts the combination of capital and labor results in the same level of output.…
Q: 6. The following list gives the balance of payments account? information: Increase in…
A: The nation's balance of payments consist of the current and capital accounts. The current account…
Q: The base Medicare payroll tax (currently 1.45%) is an example of a _______________ income tax. A.…
A: Proportional tax: The tax system that takes the same percentage of income from individuals,…
Q: Graphically analyze and then discuss the impact of an increase in autonomous money demand on the…
A: In a three-sector closed economy model, the impact of an increase in autonomous money demand on the…
Q: Summarize the Keynesian model: A. The Keynesian model emphasizes aggregate supply by focusing on the…
A: Aggregate demand refers to the total demand for all goods and services in an economy at any given…
Q: Suppose that the tempeh industry is initially operating in long-run equilibrium at a price level of…
A: In any market, equilibrium occurs at such a price where the quantity of the good or service demanded…
Q: U (x, y) = min (2x - y, 2y-x}. Draw the indifference curve for Victor that passes through the bundle…
A: IC is a curve that shows all the different combinations of two goods that a consumer considers…
Q: All consumers are alike and each has an demand curve for a monopolist’s product of P=100- 2Qd. The…
A: The monopoly firm produces where the MR =MC but monopoly firm can increase its profits by following…
Q: 1. Why does the United States enforce the legal limit on how much money the federal government can…
A: The federal government is the public government of a country, explicitly on account of the United…
Q: The Phillips curve in Lowland takes the form of = 0.04 -0.5(u-0.05), where is the actual inflation…
A: In long run both economies have same unemployment rate
Q: 2. A consumer’s demand for a medical service is: Q = 100 - ?? where ?? is the out-of-pocket price…
A: ***Given: consumer’s demand for a medical service is: Q = 100 - ??. Since ?? is stated as the…
Q: Calculate the opportunity cost of one more railcar for Canada prior to trading.
A: Opportunity cost is the cost of producing one good in terms of other. Opportunity cost shows the…
Q: Indicators of income inequality and poverty Country Gini coefficient Australia Belgium Canada France…
A: The "Gini coefficient," which is directly linked to the Lorenz curve, is the most commonly used…
Q: The current Ukraine-Russia War threatens the prosperity of the global economy, and as such, the UK…
A: Marginal Propensity to consume (MPC) - It refers to the fraction of additional income that…
Q: Suppose we have two people in the market for good x: Adam, Barbara. Their demand functions are as…
A: Xa = Max{0,20-2p} Xb = Max{0,30-2p} P = 40
Please no written by hand
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- David wants to auction a painting, and there are two potential buyers. The value for eachbuyer is either 0 or 10, each value equally likely. Suppose he offers to sell the object for $6, and the two buyers simultaneously accept or reject. If exactly one buyer accepts, the object sold to that person for $6. If both accept, the object is allocated randomly to the buyers, also for $6. If neither accepts, the object is allocated randomly to the bidders for $0. (a) Identify the type space and strategy space for each buyer. (b) Show that there is an equilibrium in which buyers with value 10 always accept. (c) Show that there is an equilibrium in which buyers with value 10 always reject.Professor can give a TA scholarship for a maximum of 2 years. At the beginning of each year professor Hahn decides whether he will give a scholarship to Gong Yi or not. Gong Yi can get a scholarship in t=2, only if he gets it in t=1. Basically, the professor and TA will play the following game twice. TA can be a Hardworking type with probably 0.3 and can be a Lazy type with a probability of 0.7. Professor does not know TA's type. If TA is hard working, it will be X=5 and TA will always work if he gets a scholarship. If TA is lazy, it will be X= 1. There is no time discount for t=2. Find out a Perfect Bayesian Equilibrium of the game.Consider the game of Chicken in which each player has the option to “get out of the way” and “hang tough” with payoffs: Get out of the way Hang tough Get out of the way 2,2 1,3 Hang tough 3,1 00 a. Find all pure strategy Nash equilibria, if they exist b. Let k be the probability that player 1 chooses “hang tough” and u be the probability that player two chooses “hang tough.” Find the mixed stragety Nash equilibria, if they exist
- Pl and P2 play a simultaneous move game with payoffs given below. Suppose now that both players have private information. P1 knows the value of 01, but P2 does not. P2 knows the value of 02, but P1 does not. Р2 A В A 01,–1 1,0 P1 В 1,0 0, 02 Suppose 01 is equal to either 0 or –1, each with probability 1 Suppose 02 is equal to either –l or 1, each with probability 1/2. All of the above is common knowledge. Again, notice that even though 0; is random from Pj's perspective, Pi knows what O; is. Consider pure equilibria of the game. (By pure equilibrium, I mean that no type of any player mixes in the equilibrium, but this doesn't mean that each type of a player has to do the same thing.) How many pure equilibria does this game have? Numerical answerGame Theory Consider the entry game with incomplete information studied in class. An incumbent politician's cost of campaigning can be high or low and the entrant does not know this cost (but the incumbent does). In class, we found two pure-strategy Bayesian Nash Equilibria in this game. Assume that the probability that the cost of campaigning is high is a parameter p, 0 < p < 1. Show that when p is large enough, there is only one pure-strategy Bayesian Nash Equilibrium. What is it? What is the intuition? How large does p have to be? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.Phil, Stu, and Doug are deciding which fraternity to pledge. They all assign a payoff of 5 to pledging Phi Gamma and a payoff of 4 to Delta Chi. The payoff from not pledging either house is 1. Phi Gamma and Delta Chi each have two slots. If all three of them happen to choose the same house, then the house will randomly choose which two are admitted. In that case, each has probability 2/3 of getting in and probability 1/3 of not pledging any house. If they do not all choose the same house, then all are admitted to the house they chose. Find a symmetric Nash equilibrium in mixed strategies.
- $11. Anne and Bruce would like to rent a movie, but they can't decide what kind of movie to get: Anne wants to rent a comedy, and Bruce wants to watch a drama. They decide to choose randomly by playing "Evens or Odds." On the count of three, each of them shows one or two fingers. If the sum is even, Anne wins and they rent the comedy; if the sum is odd, Bruce wins and they rent the drama. Each of them earns a payoff of 1 for winning and 0 for losing "Evens or Odds." (a) Draw the game table for "Evens or Odds." (b) Demonstrate that this game has no Nash equilibrium in pure strategies.Person A can trust or not trust person B. If person A decides to not trust, both players get a zero payoff. If Person A trusts, Person B can abuse or honour the trust bestowed upon them. If person B abuses Person A's trust, Person A gets a negative payoff. If person B honours person A's trust, person A gets a positive payoff. Person B can be of two types: trustworthy or not trustworthy. Both trustworthy and untrustworthy person B types get a positive payoff if they honour A's trust. But a trustworthy person B prefers to honour person A's trust whereas an untrustworthy B prefers to abuse. 2 Nature determines randomly if person B is trustworthy or not. Person B knows if they are trustworthy or not but person A doesn't know. The probability that person B is not trustworthy is a and the probability that person B is trustworthy is 1 a. a is common knowledge, meaning that both person A and person B know the probability of person B being (not) trustworthy. a) Draw the extensive game version…4. You have probably had the experience of trying to avoid encountering someone, whom we will call Rocky. In this instance, Rocky is trying to find you. It is Saturday night and you are choosing which of two possible parties to attend. You like Party 1 better and, if Rocky goes to the other party, you get a payoff 20 at Party 1. If Rocky attends Party 1, however, you are going to be uncomfortable and get a payoff of 5. Similarly, Party 2 gives you a payoff of 15, unless Rocky attends, in which case the payoff is 0. Rocky likes Party 2 better, but he is likes you. He values Party 2 at 10, Party 1 at 5, and your presence at either party that he attends is worth an additional payoff of 10. You and Rocky both know each others strategy space (which party to attend) and payoffs functions.
- You and I play the following game. Hidden from you, I put a coin in my hand: with probability p it is a 10 pence coin and otherwise it is a 20 pence coin. You now guess which coin is in my hand: you guess it is 20 pence with probability s and otherwise you guess it is a 10 pence coin. You get to win the coin if you guess correctly and otherwise win nothing. What (in terms of p and s) is your expected gain in pence from playing this game once with me? Challenge: suppose we are going to play repeatedly and you want to maximise your gain and I wish to minimise my loss. What value of p should I choose and what value of s should you choose? (This question is somewhat ill-defined, but it does have an interesting possible answer.) (Note: anything labelled "challenge" will not be part of the hand-in.)The deciding shot in a soccer game comes down to a penalty shot. If the goal-keeper jumps in one corner and the player shots the ball in the other, then it is a goal. If the goalie jumps left and the player shoots left, then it is a goal with probability 1/3. If the goalie jumps right and the player shots right, it is goal with probability 2/3. If both players play Nash strategies, what is the expected value of goals that will follow from this penalty shot. 1/9 2/9 3/9 4/9 5/9 6/9 O7/9In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (36-40). GAME 5 Player B B1 7,3 A2 3,8 Player A A1 In Game 5 above, in the Nash equilibrium in mixed strategies player A chooses A1 with a 5/9 probability. player A chooses A1 with a 2/9 probability. player A chooses A1 with a 3/9 probability. O player A chooses A1 with a 4/9 probability. B2 5, 10 9,6