1. What are the advantages and disadvantages of collusion? Define Collusion 2. In a Stackelberg game, what is the best response that follower firm 2 can make to the choice y1 already made by the leader, firm 1? Defining the game and provide an example of the best response

1. What are the advantages and disadvantages of collusion? Define Collusion 2. In a Stackelberg game, what is the best response that follower firm 2 can make to the choice y1 already made by the leader, firm 1? Defining the game and provide an example of the best response

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter15: Imperfect Competition

Section: Chapter Questions

Problem 15.7P

See similar textbooks

Related questions

Q: L'a i a b. Write the tangency condition for a minimum of long run total cost, LTCmin- C= 'WL+ rk ( W...

A: Given production function Q=L1/2K1/2 .... (1) Isocost line equation: C=wL+rK

Q: Consider the following dynamic game between two players. Each player chooses one of the actions "kee...

A: Given information There are 2 strategy each player plays Keep and Share 2 players P1 and P2 It's a ...

Q: Identify the following weighted voting system. one person, one vote veto power s...

A: Here, a specfiic voting system is given as the total number of votes is 84, which are divided into d...

Q: What do you think is the most important aspect to consider when trying to understand the concept of ...

A: Globalization is defined as the process under which interactions takes place between individuals, fi...

Q: he demand (downward sloping line) and marginal cost (upward sioping curve) of a monopolist are shown...

A: From the graph, we can write, when Q=8, P=0 and Q=0, P=8 So the equation of demand function: P=8-Q ...

Q: Employment protection laws do NOT: a. decrease the duration of unemployment. b. increase the unemplo...

A: Discrimination against eligible individuals with disabilities is illegal under employment protection...

Q: Consider a numerical example using the Solow Growth Model, for 2 countries. Country A: d=0.1, s=0.3,...

A: Introduction Its answer is country B Income of country A is YA = K0.3 L0.7 Income of country B is YB...

Q: Question 2 Imagine a loan contract with a nominal interest rate of 17 percent. The expected inflatio...

A: a) Ex ante real interest rate = nominal interest rate - expected inflation ...

Q: Recent flooding in Australia, have driven up prices for items ranging from coffee beans to beef. Pri...

A: The supply of a commodity depends upon various factors like the price of the good, price of raw mate...

Q: (A) explain how rapid urbanization can pose a problem in the country. Explain in 3 sentences only. (...

A: Money has been evolved since long back and people utilise money for various requirements. There are ...

Q: (d). Suppose production of Cars and Textiles in Turkey requires capital and labor. But the capital i...

A: Consumers are accustomed to seeing goods from worldwide at their local grocery stores and retail out...

Q: 4. "It is not the continued shift of the SRAS curve that causes continued inflation". Explain this s...

A: "It is not the continued shift of the SRAS curve that causes continued inflation". The explanation i...

Q: 1. The movement from point A to point B on the graph is caused by a. an increase in price. b. ...

A: Demand is made of different combinations of price and quantity demanded.

Q: Please explain what is meant by externality, then give an example of an externality case positive an...

A: Answer 1 Externality is the cost or benefit that the market transaction brings to the third party. I...

Q: Employment protection laws do NOT: a. decrease the duration of unemployment. b. increase the unemplo...

A: Employee rights, such as the right to earlier termination notice, the right to redundancy payments u...

Q: Pice per bote d The dagram to your right describes the per unt costs and revenues related to the mon...

A: In a Monopoly situation, there is no difference between firm and industry. Therefore under monopoly,...

Q: At price $5 in this market: $6 6,000-bushel. surplus 7,000-bushel shortage 6 7 8. 10 12 14 16 18 Bus...

A: Disequilibrium refers to the situation when the quantity demanded is not equal to the quantity suppl...

Q: Refer to the diagram that shows an ADIAS model for a hypothetical economy. The economy begins in lon...

Q: please draw a graph showing the Aggregate Demand curve and Aggregate Supply curve and then show how ...

A: The demand and supply of all products and services produced by an economy are the emphasis. As a res...

Q: What is GDP and Real GDP and how is it relevant in Macro?

A: In the mentioned question we have to tell what is GDP and Real GDP and why and how these are related...

Q: Fishermen in the Atlantic ocean in Nova Scotia are catching fewer fish and are having to fish many m...

A: The concept that depicts additional output that results from one unit increase in the use of inputs ...

Q: A large group of players each guesses a number between 0 and 300. The winner is the person whose umb...

A: A dominant strategy is one that a player chooses independently of other strategies and that pays him...

Q: Impact of mandatory Phihealth coverage for all person with disability.

A: The PWD ID is the standard distinguishing proof card for people with disability (PWDs) in the Philip...

Q: "At the time of the Great Depression the Secretary of the Treasury Andrew Mellon was quoted as sayin...

A: depression, in economic matters, a significant slump in the business cycle portrayed by sharp and su...

Q: An individual preference scale for two goods x and y is defined by the marginal rate of x- a Show th...

Q: 1. Why do we need microeconomic models? Using appropriate diagram(s), explain how changes in a facto...

A: Please find the answer below.

Q: (3) Suppose there are two consumers in the market for a good and their demand functions are as follo...

Q: A commercial bank is planning to offer Luna a loan in the amount of $15,000 and the bank figures tha...

A: To repay the loan, Luna's bank figures the loan amount and offer by the interest rate and probabilit...

Q: cture "Origins and Missions of th Reserve" Ben Bernanke agreed w dent who stated the recovery of th ...

A: Tightening strategy happens when national banks raise the government subsidizes rate, and facilitati...

Q: If you are asked to perform an incremental ROR analysis for the two robots listed below, how would y...

A: The analysis of financial return where there are two opportunities for investment that involve diffe...

Q: One of the tasks of a Financial System include providing affordable loans to all consumers and firms...

A: Allocation of savings into channels of investment in the economy is being done by the financial syst...

Q: 1. The monthly demand function is pp = 26,000,000 -qand the supply function %3D before taxation is p...

A: Inverse Demand: Pd = 26000000 - 1/3q2 Inverse Supply: Ps = 1000000+3750q

Q: Denzil's Fried Chicken estimates its demand function for Chicken Dinners to be (see image) a. Given...

A: Demand function shows how quantity demanded is related to price of the good itself, price of related...

Q: What annual interest rate is earned by a 16-week T-bill with a maturity value of $2,400 that sells f...

A: Please find the answer below.

Q: The supply and demand curves for a product are given by the following equations: P = aQs + b and P c...

A: Given information Demand function P=cQd+d Supply function P=aQs+b new demand function Q=1520-5P P=18...

Q: MAC = 94 - 0.04E %3D MD = 0.01E The government sets an emission standard at E = 2000. %3D The probab...

A: Marginal Damage (MD) is defined as the hard caused by the additional units of pollution emitted into...

Q: Suppose a particular stretch of river can be used to build a hydropower dam that generates 2983 Kilo...

A: Opportunity cost is the forgone benefits from the next best alternative.

Q: What is the capital-accumulation equation in the Solow growth model? А. Depreciation per worker-Inve...

A: Solow model helps to express the relationship between output and factors of production. It is assume...

Q: What are determinants that shift the supply curve, define and list 4 conditions.

A: FACTORS THAT SHIFT SUPPLY CURVE ARE

Q: 4. Welfare Impact of Trade Continue to refer to the previous diagram: https://drive.google.com/file/...

A: When the world price lies below the equilibrium, there are imports because quantity demanded exceeds...

Q: What would be the rational for Product customisation impact on revenue and profitability

A: People expect companies to personalize their products and services to their individual needs in the ...

Q: How did Lance Armstrong and the business of doping relate to the prisoner effect.

A: DOPING IN PROFESSIONAL SPORTS is back in the news after Lance Armstrong was stripped of his seven To...

Q: Which of the following is a way to compute GDP?

A: The economics as a study is based upon the idea that the resources which are present with the econom...

Q: What does this phrase means? “Immigrants steals our job opportunities.”

A: The concept that depicts settling or living permanently in a foreign country is being known as immig...

Q: In which economy is GDP per capita higher in steady state? Economy A Economy B O Not enough Informat...

A: The Solow Model of economic growth or the neo classical model of growth This model is also known as ...

Q: We want to model the oil markets of the 19th century. And let the inverse demand for oil be P = 300 ...

A: In the monopsony market only one buyer and one seller. In this market optimal condition be determine...

Q: How did the large decrease in aggregate demand during the first and second quarters of 2020 (the Cor...

A: The economies around the globe are involved in various economic and financial activities. The econom...

Q: ould consumer or producer carry the burden of tax if good is inelastic? Show on a grap

A: Price elasticity of demand is a measure of the responsiveness of the demand for a good to changes in...

Q: The IS-LM model is considered. Autonomous consumption equals 100, autonomous investment equals 200, ...

A: Given: autonomous consumption=100 Autonomous investment=200

Q: A new project is being planned for a study period of 8 years. It will require P250,000 for the start...

A: The annual effective interest rate is the rate of interest that is determined on the basis of a numb...

Question

1. What are the advantages and disadvantages of collusion? Define Collusion

2. In a Stackelberg game, what is the best response that follower firm 2 can make to the choice y₁ already made by the leader, firm 1? Defining the game and provide an example of the best response.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: We'll answer the first question as no particular question has been mentioned

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

1. What are the advantages and disadvantages of collusion ? 2. In a stackelberg game, what is the best response that follower firm 2 can make to the choice already made by the leader, firm 1 ?
In a Stackelberg game, what is the best response that follower firm 2 can make to the choice y1 already made by the leader, firm 1? Define the game and provide an example of the best response.
Solve for the Nash equilibrium (or equilibria) in each of the following games. (a) The following two-by-two game is a little harder to solve since firm 2’spreferred strategy depends of what firm 1 does. But firm 1 has a dominantstrategy so this game has one Nash equilibrium. Firm 2 Launch Don’tFirm 1 Launch 60, -10 100, 0 Don’t 80, 30 120, 0 What is the Nash equilibrium of this simultaneous-move game? (b) What would the outcome of this game be if instead firm 1 moved first and then, after seeing what firm 1 chose, firm 2 chose it strategy? In this case firm 1 doesn’t necessarily need to choose a best response, but firm 2 must choose a best response since it moves second.
one two X, 14 three four Firm B Low Firm A Sell High 6, Y Buy Low Let X = 9, Y = 15 and Z=10. This game has 10, Z Firm B High 8,8 Nash equilibrium.
a) Draw an extensive form game with 4 outcomes (2 moves for player 1 followed by 2 moves for 2 after each of 1's moves) and no pure strategy Nash equilibrium. b) Write the strategic form to verify your answer to (a) c) Draw an extensive form 2-player game, in which both players always move, that has exactly 4 outcomes, 1 subgame perfect Nash equilibrium and no non-subgame perfect Nash equilibrium and no dominant strategies. d) Write the strategic form and use it to verify your answer to (b)
In this game, which of the following claim is wrong: X с D с D 2 3 Veuillez choisir une réponse. a. 2 0 0 1 3 1 This game is similar to the prisoner dilemma. b. Players do not always play the same best response. C. A the Nash equilibrium, the gains for each player is smaller than for other outcomes. d. D is a dominant strategy for player 1.
K In a game, there are two players: Player 1 and Player 2. They have two strategies to select from, A and B. Where the first payoff and the second payoff in every cell is for Player 1 and Player 2 respectively. Which of the following is an example of a game without a dominant strategy? (Check all that apply.) A. C. Player 1 Player 1 A B A B A 3,-3 1, 1 A 2,1 0,0 Player 2 Player 2 B 3, -3 5, -5 B 0,0 1,2 B. D. Player 1 Player 1 A B A B A 1,-1 -1, 1 Player 2 Player 2 A 3.5, -1.5 2.7, -1 B -1, 1 1,-1 B -5, 3 0,0 If the dominant strategy for Player 1 is selecting strategy A and the dominant strategy for Player 2 is strategy B, then A B is an example of a c From ame C Murat Çok Di id Kushn y My Hand
on Mary, UE, BD UF, AC DF, BC UF, BD DE, AC DE, BC Nancy U D Nancy -5,4 Mary -0,2 -6,2 -2.6 Which of the following answers is a subgame perfect Nash equilibrium in this game? Check all that apply. (Answers below are formatted as Mary's strategy, Nancy's strategy.)
Consider a game where each player picks a number from 0 to 60. The guess that is closest to half of the average of the chosen numbers wins a prize. If several people are equally close, then they share the prize. The game theory implies that (A) all players have dominant strategies to choose 0 (B) all players have dominant strategies to choose 30 (C) there is a Nash equilibrium where all players pick 0 (D) there is a Nash equilibrium where all players pick positive numbers Behavioral data in such games suggests that (A) most subjects choose 0; (B) most subjects choose 30;(C) common answers include 30, 15, 7.5, and 0; (D) most subjects use randomization.
2. Brad and Angelina have agreed to meet up for their first date. Neither of them can remember the exact location where they arranged to meet up and have forgotten their phones at home. Their payoff matrix can be described as follows: Brad The Hive Le Monde a) What is the Nash equilibrium in this game? Angelina The Hive 5; 5 0; 0 Le Monde 0; 0 5; 5
Consider the following simultaneous game: Player 1 U D Player 2 L 30,10 -10, 20 R 10, 20 5,-10 Please indicate whether each of the following statements is true or false. Player 1 has a dominant strategy. This game has a Nash equilibrium. This game has a Nash equilibrium in pure strategies. Player 1's best response is D if player 2 plays R.
Consider the following two player game: Player 1 ABCD X 1,2 4,1 5,2 2,3 Player 2 Y 2,2 3.5 1 4,4 0.4 Z 5.1 3,3 7,0 7,5 a. Find the strategies that survive iterated elimination of weakly and strictly dominated strategies. b. Find the best responses to each strategy and find all (pure strategy) Nash equilibria.