Player 1 B L 8 9 Player 2 8 0 R 0 1 9 1 Collusion 5. Consider the following game and suppose that it is repeated an infinite number of times. Players have a discount value of 8. (a) For what values of 8 can collusion on (T,L) be sustained under the following grim trigger strategy: Play (T,L) if (T,L) has been played in all previous periods Otherwise play (B,R).
Q: If Jeff and Mimi choose actions simultaneously, what are the pure-ar mixed-strategy Nash equilibra?…
A: In a Nash equilibrium, each player’s strategy is optimal given the choices of the others. It…
Q: Consider the case of a manufacturing company which produces and sells brand pens. The selling price…
A: Given information:Total fixed operating cost (FC) = $2 millionTotal fixed financing cost (FCF) =…
Q: Housing prices in the UK are generally very high, particularly in certain areas of the country such…
A: Equilibrium refers to situation in the market when quantity demanded by the consumer equals to the…
Q: The table shows the amounts held as the various components of M1 and M2. Item Non-chequable…
A: The supply of money includes the circulation of currency, demand deposits and other deposits of…
Q: Suppose now the government passes a law that significantly increases the minimum wage. This change…
A: The natural rate of unemployment is the sum of the frictional unemployment rate and the structural…
Q: Questions 1. Even though Professor Ramirez deviated from the college’s policy regarding…
A: “Since you have posted multiple questions, we will provide the solution only to the first question…
Q: 5. Fiscal policy, the money market, and aggregate demand Suppose there is some hypothetical economy…
A: The Marginal Propensity to Consume (MPC) and Marginal Propensity to Save (MPS) are concepts in…
Q: Econoline Company produces only two goods and they operate with limited resources. The production…
A: The Production Possibility Frontier is a graphical representation that shows the maximum potential…
Q: Mario's Pizza is the only pizza place in Sorrento City. The graph shows the market demand curve for…
A: Marginal revenue is the addition to the total revenue from the sale of an additional unit of a…
Q: Problem 10-49U Overall: (______/10) On the graph paper included on the following page, draw a graph…
A: Monopoly:Monopoly is a market where there is one seller and many buyers. Seller sells the product…
Q: Supposed that a small open economy is running a trade deficit. The government enacts protectionist…
A: When a small open economy runs a trade deficit, it means that it is importing more goods and…
Q: QUESTION 1 Which of the following statements is/ are correct i. At the maximum point of the total…
A: This can be defined as a cost that shows the type of cost that an individual, business, or any other…
Q: The price of a good is $50. The market for this good is perfectly competitive. The marginal cost…
A: The objective of this question is to find out the quantity of goods that the firm will produce in a…
Q: In a perfectly competitive model a) economies of scale are large relative to the size of the market…
A: A perfectly competitive model refers to a market situation at which there are many buyers and…
Q: John runs a small bakery in his neighbourhood, John's Delightful Bakery. He bakes a variety of…
A: Explicit cost is the actual monetary expenditure incurred to run a business. Implicit cost is the…
Q: 3. Show in a diagram the initial market for 5 stages reverse osmosis filter systems. Then, show the…
A: Market demand for a commodity can shift as a result of a change in consumer income, their tastes and…
Q: Refer to Figure 16-6. In response to the situation represented by the figure, we would expect a. new…
A: Monopolistic competitive market:In this market, there are large numbers of buyers and sellers. They…
Q: Production and Costs Analysis Fill in the missing parts in the following tables to illustrate the…
A: Capital is a fixed factor. A fixed amount is assumed to be invested, the interest on which is…
Q: The graph shows the identical production possibilities of two countries, A and B. They face an…
A: A Production Possibility Frontier (PPF) illustrates the various attainable combinations of two goods…
Q: for the below table, can you provide the supply function and list out the different variables and…
A: First, we will start by defining a supply function based on the given information. The supply…
Q: Consider the table, which shows five possible choices of output combinations for Rock's restaurant.…
A: To determine the opportunity cost of changing from Choice A to Choice D in the context of Rock's…
Q: Suppose that every driver faces a 3% probability of an automobile accident every year. An accident…
A: Actuarially fair premium is a premium or price that is calculated based on the expected value of the…
Q: Stealth bank has deposits of $700 million. It holds reserves of $10 million and has purchased…
A: The balance sheet of a bank consists of two sections (1) assets and (2) liabilities.A bank's assets…
Q: kindly provide an equation = ((107.37-100))/100 × 100=7.37%
A: The objective of the question is to understand the calculation behind the given equation, which is…
Q: 1. The opportunity cost of holding money Suppose you've just inherited $5,000 from a relative.…
A: This can be described as a concept that is related to the cost of holding the money (or cash) is the…
Q: 1. Where have most textiles been manufactured in the past decade? Why is that? What does this fact…
A: The article highlights the historical domination of Asian nations while discussing a change in the…
Q: The garment producer faces the inverse demand function PG = 300 - 2G, where PG is the price of…
A: The objective of the question is to determine the profit-maximizing prices and quantities of…
Q: explain your answers in two or three sentences. a) True or False? Short-run average total cost…
A: Costs refers to the expenses that incur in the process of production of goods or services. There are…
Q: According to the diagram, cheeseburgers cost $ each, and seltzer costs $ per can. Adjust the diagram…
A: The budget constraint represents the combinations of goods and services that a consumer can purchase…
Q: Macmillan Learning (Table: Total Cost and Total Individual Benefit Received from Sanitation Workers)…
A: The social benefits arise when a product or service causes a positive effect on society as a whole…
Q: The maximum economic profit (or minimum economic loss) for the firm in the diagram above would be a…
A: A simple economic loss is the financial loss or loss of money through circumstances that exclude…
Q: Quantity (students per year) 35) 35) The figure above shows the market for private elementary school…
A: The externalities refers to effects of economic activities that are not internalized by demand and…
Q: Average Incomes of Children - with Low Income Parents (51000) 45- 40- 35- 30- 25- Upward Mobility…
A: The housing sector's importance in the current economy stems from its significant effects on…
Q: 2. Separate the substitution effect from the income effect for an increase in the price of a Giffen…
A: A Giffen good is a rare and counterintuitive concept in economics that describes a type of inferior…
Q: Suppose that Shen, an economist from a research facility in Washington, and Valerie, another…
A: Economists are professionals who study and dissect economic frameworks, ways of behaving, and…
Q: The people in an economy have $20 million in money. Bank hold 1% of the deposits as reserves. What…
A: The people in an economy have $20 million in money. Bank hold 1% of the deposits as reserves.
Q: What are some strategies for protecting consumer privacy on an online e-commerce platform selling…
A: The objective of this question is to identify strategies that can be used to protect consumer…
Q: Interest rate interest rate 10 00 8 6 2 0 10 00 10 4 2 0 Increase 15 30 45 60 75 90 105120135150165…
A: Analyzing economics entails assessing data to comprehend and interpret economic occurrences. It…
Q: Two alternatives are being considered for a water resources project. Alternative A has a project…
A: Given: A has a project lifetime of 40 YearsB has a project lifetime of 30 YearsInterest rate = 8%…
Q: 1) Which of the following statements is/are correct i. At the maximum point of the total product…
A: Total Product is the total quantity of goods produced by a firm during a given period of time…
Q: Suppose that a consumer/investor has an initial endowment only for the current period, which is Eo…
A: The two-period consumption model is a fundamental concept in economics that explores the…
Q: Consider a small country with a Home monopolist and a perfectly competitive global market. The graph…
A: Equilibrium price: The equilibrium price is the point where the monopolist's marginal cost curve…
Q: In this model, the society allocates a fraction "gamma" of workforce to innovation and the remaining…
A: Real GDP per worker measures the total economic output produced by a worker and the total output is…
Q: Suppose there are only two consumers in the market for a public good. The figure to the right shows…
A: Public goods are commodities or services that benefit all members of society. Public goods are non…
Q: A study of about 1,800 U.S. colleges and universities resulted in the demand equation q= 10,200-…
A: The price elasticity of demand is the proportional change in quantity demanded to the change in…
Q: Econoline Company produces only two goods and they operate with limited resources. The production…
A: A graphical depiction known as the Production Possibility Frontier illustrates the highest possible…
Q: 6. Required and excess reserves Suppose that Walls Fergo Bank currently has $200,000 in demand…
A: The money that financial institutions keep on hand to cover their deposit requirements and preserve…
Q: Determine the capitalized cost of a permanent roadside historical marker that has a first cost of…
A: The present value or PV in financial economics is defined as the current value quantity of money…
Q: can anyone tell me the reasons for the low purchasing power of chinese in the 1960’s and also…
A: Purchasing power measures the monetary power of the goods or services. It shows the ability of the…
Q: Everything else being equal, what is usually the effect on a country's currency when it undergoes a…
A: It can be defined as a concept that shows how much currency of one nation is valuable in terms of…
Step by step
Solved in 3 steps with 3 images
- GAME ZZZ B1 Player B A1 30, 30 Player A A2 20, 40 B2 40, 20 35, 35 In the Game ZZZ (see table above), all payoffs are listed with the row player's payoffs first and the column player's payoffs second. In this game, neither player has a dominant strategy. the Nash equilibrium does not maximize the total payoff. there is no Nash equilibrium. the Nash equilibrium maximizes the total payoff.Paramter y = 0 What is the highest payoff any player can receive in any subgame perfect Nashequilibrium of the repeated game?Consider the following voting game. There are three players, 1, 2 and 3. And there are three alternatives: A, B and C. Players vote simultaneously for an alternative. Abstaining is not allowed. Thus, the strategy space for each player is {A, B, C}. The alternative with the most votes wins. If no alternative receives a majority, then alternative A is selected. Denote ui(d) the utility obtained by player i if alternave d {A, B, C} is selected. The payoff functions are, u1 (A) = u2 (B) = u3 (C) = 2 u1 (B) = u2 (C) = u3 (A) = 1 u1 (C) = u2 (A) = u3 (B) = 0 a. Let us denote by (i, j, k) a profile of pure strategies where player 1’s strategy is (to vote for) i, player 2’s strategy is j and player 3’s strategy is k. Show that the pure strategy profiles (A,A,A) and (A,B,A) are both Nash equilibria. b. Is (A,A,B) a Nash equilibrium? Comment.
- Consider the following coordination game: Player 2P1 Comedy Show Concert Comedy Show 11,5 0,0 Concert 0,0 2,2 a. Find the Nash equilibrium(s) for this game.b. Now assume Player 1 and Player 2 have distributional preferences. Specifically, both people greatly care about the utility of the other person. In fact, they place equal weight on their outcome and the other person’soutcome, ρ = σ = ½. Find the Nash equilibrium(s) with these utilitarianpreferences.c. Now consider the case where Player1 and Player2 do not like each other. Specifically, any positive outcome for the other person is viewed as anegative outcome for the individual, ρ = σ = -1. Find the Nashequilibrium(s) with these envious preferences.The ultimatum game is a game in economic experiments. The first player (the proposer) receives a sum of money and proposes a fair proposal (F - 5;5) or unfair proposal (U - 8;2). The second player (the responder) chooses to either accept (A) or reject (R) this proposal. If the second player accepts, the money is split according to the proposal. If the second player rejects, neither player receives any money. 1 A 5:5 2 F R 0:0 U A 8:2 2 1. Find the subgame perfect Nash Equilibrium using backward induction. R 0;0Problem 2. Consider the partnership-game we discussed in Lecture 3 (pages 81-87 of the textbook). Now change the setup of the game so that player 1 chooses x = [0, 4], and after observing the choice of x, player 2 chooses y ≤ [0, 4]. The payoffs are the same as before. (a) Find all SPNE (subgame perfect Nash equilibria) in pure strategies. (b) Can you find a Nash equilibrium, with player 1 choosing x = 1, that is not subgame perfect? Explain.
- • (1,0) (1,1) Player 2 G D H (2,0) Action Player 1 Player 1 Action B Player 1 (3,-1) E Player 2 (0,1) (-1,-1) (a) Find all the Subgame Perfect Nash equilibria in this game. (b) Find all the Nash equilibria in this game. (Hint: write the game in strategic form.)In Homework 1, we saw that there is no strict dominant strategy equilibrium in an inspection game. Thus, the players must randomize and play a mixed strategy in equilibrium. Suppose the agent shirks with probability p₁ and works with probability (1 - p₁), while the principal inspects with probability p2 and does not inspect with probability (1-P2). Find the mixed strategy equilibrium for this game. I NI S (0, -k) (w, -w) W (w c, p-w-k)| (wc, p-w) Table 1: Payoff matrix for the inspection gameParamter y = 0 If ⟨a, d⟩ is played in the first period and ⟨b, e⟩ is played in the second period, whatis the resulting (repeated game) payoff for the row player?
- (b) Consider the following game. 2 L M H L 4,4 2,4 1,5 1 M 4,2 3,3 0,2 H 5,1 2,0 0,0 Suppose the game above is played twice. The players do not discount the future (i.e. the discount factor for each player is 8 = 1). Describe a subgame-perfect equilibrium of this twice- repeated game in which players play (L, L) in period 1. Consider an auction for a single object with N> 1 symmetric, risk-neutral bidders whose private valuations vi, i = {1,..., N}, are independent draws from a given distribution F on the in- terval [0, 1]. Prove that in a sealed-bid second-price auction (i.e. Vickrey auction), bidding true value is a weakly dominant strat- egy for any bidder.In a gambling game, Player A and Player B both have a $1 and a $5 bill. Each player selects one of the bills without the other player knowing the bill selected. Simultaneously they both reveal the bills selected. If the bills do not match, Player A wins Player B's bill. If the bills match, Player B wins Player A's bill. Develop the game theory table for this game. The values should be expressed as the gains (or losses) for Player A. Is there a pure strategy? Why or why not? Determine the optimal strategies and the value of this game. Does the game favor one player over the other? Suppose Player B decides to deviate from the optimal strategy and begins playing each bill 50% of the time. What should Player A do to improve Player A’s winnings? Comment on why it is important to follow an optimal game theory strategy.In a gambling game, Player A and Player B both have a $1 and a $5 bill. Each player selects one of the bills without the other player knowing the bill selected. Simultaneously they both reveal the bills selected. If the bills do not match, Player A wins Player B's bill. If the bills match, Player B wins Player A's bill. Develop the game theory table for this game. The values should be expressed as the gains (or losses) for Player A.