Now assume the game is simplified into two strategies for each player. Paul plays T or B, and Stella plays L or R. They move simultaneously. The (new) payoffs are: Stella L R Paul T (3,1) (-1,-3) B (-2,-3) (1,4) d. What is the Nash equilibrium in pure strategies? Identify all if there are more than one. e. What is the mixed-strategy Nash equilibrium?
Q: For the following data calculate the unemployment rate (round your answer) Population 9 millio…
A: Unemployment rate is the percentage of labor force that is unemployed.
Q: Part 4 : Identify and match each good below depending on the type of good (private, public, common…
A: The term rivalrous means goods for which the sellers compete against each other and excludable goods…
Q: Assume that you are studying exchange rates between India and the US. Assume that the equilibrium…
A: Here, it is given that Indian economy is experiencing a fall in the inflation rate.
Q: HAT IS INFANT-INDUSTRY PROTECTION?
A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…
Q: Lilly deposits $350 every month into an account that earns 8% annual interest where interest is…
A: To calculate future value at compounded semiannually, we need to use the formula : FV=PV(1+i)n…
Q: Why is the axiom of economics state that 2-3% of inflation is a good thing for the economy. Why…
A: When inflation counteracts the negative effects of deflation, it is advantageous.Consumers are…
Q: If you invest $2,000 today, withdraw $1,000 in 3 years, deposit $3,000 in 5 years, deposit $1,500 in…
A: Future values refers to compounding current cash flows to the future value using formula - F V = P…
Q: Is the following statement true or false? Given is the graph below of the oil market. Without the…
A: "Demand indicates a negative relationship between price and quantity of a commodity demanded and…
Q: nswer the following questions using economic concepts: when most people want to know the cost of an…
A: Opportunity costs refer to the benefit that is sacrificed that would have been received from the…
Q: Mac's credit card statement included $1297.00 in cash advances and $143.91 in interest charges. The…
A: This is question of interest rate .
Q: What effect, if any, does each of the following events have on the price elasticity of demand for…
A: Elasticity of demand is the sensitiveness in the quantity demanded due to any change in its factors…
Q: What is monopolistic competition?
A: The process through which buyers and sellers agree on the price and quantity of goods to be…
Q: Two individuals, A and B, have the following utility functions UA min {x¹, y^} UB min {x¹, y³} = and…
A: (a) Total x and y in the economy= xA + xB = 100 + 100 = 200yA + yB = 100 + 100 = 200 Edgeworth…
Q: Assume that the Reserve Bank of Australia have implemented contractionary monetary policy to bring…
A: The Phillips curve denotes a negative relation between the inflation rate and the unemployment rate.
Q: 2), Airbus and Boeing, in the market. Each firm’s cost is MC=AC=20. The market demand is Q=100-(1/2)…
A: Cournot competition is an economic model in which competitors independently determine production at…
Q: Suppose you are given the following data for a particular economy (unit: Millions of Euros): Gross…
A: Gross National Product refers to the sum of the values of all the finished goods and services and…
Q: Consider an economy where the monetary base is k24 000, while the total deposits are k56 000. Bank…
A: Given information Monetary base=K24000 Total deposit=K56000 Bank can loan=K50400 Excess reserves=30%…
Q: Savings deposits = $2221.5b Demand Deposits = $1880.6b Required reserve ratio = 9% Currency in…
A: M2 is the part of money supply which includes the components of M1 and other deposits , and money…
Q: Part 1 : Answer the following Games below. For each game below, please illustrate and show how the…
A: "Nash equilibrium is computed from a payoff matrix which represents the payoffs of each players from…
Q: Consider production possibilities of goods and services in China, Since 1980, the population of…
A: Given that the population of China has increased from 1 billion to more than 1.4 billion. And there…
Q: Consider C-grade bonds with average cumulative default rate 19.1 for year 5 and 22.53 for year 6.…
A: In the mentioned question we have been asked about the hazard rate of particular 6h year from…
Q: A new chemical component is discovered with amazing properties which however is so toxic that it can…
A: Creative destruction suggests that the old is always replaced by the new.
Q: Refer to the company that you proposed in the previous question. For each scenario below, use a…
A:
Q: If a country that fixes its exchange rate increases its money supply, then its currency will become…
A: In the fixed exchange rate system, any change in money supply will lead to affect the value of…
Q: & Deriving the short-run supply curve Consider the competitive market for halogen lamps. The…
A: Break-even and Shut down point:- The phase wherein the marginal cost equals the ATC is known as the…
Q: 3. The figure below demonstrates the moral hazard with insurance coverage. When consumer pays 50%…
A: A moral hazard indicates that a party may function differently than they would retain without the…
Q: explain Cohen & Plog's Model
A: The touristry trade has become one among the quickest growing industries and one among the biggest…
Q: What is an assumption of a Neoclassical model? a. The future is uncertain b. Output increases when…
A: Neoclassical economics is a school of thought in which the supply and demand model governs the…
Q: Describe the optimal level of state involvement in the economy of developing countries. What are the…
A: The government's role in the economy has an influence on technological performance and long-term…
Q: 4) Refer to the table below to answer the following questions. Table 2 Firm A R&D No R&D A:-$3 A:…
A: The dominant strategy is the best course of action that provide the maximum outcomes no matter what…
Q: 1. Assuming that the economy is in equilibrium, find the value of the interest rate. 2. Going from…
A: A small open economy contracted to SOE, is an economy that takes part in global exchange, however,…
Q: Does the Monetary Model imply that inflation in a country (in particular a major economy like the…
A: The transmission of monetary policy is the process through which changes in the Reserve Bank's…
Q: Effective crisis management requires a strong bank resolution framework. Why have bank regulators…
A: An effective resolution regime should enable any bank to be resolved in a timely way without causing…
Q: Part 2 : You are examining a firm that is under a perfectly competitive market. Show all necessary…
A: Introduction Perfectly competitive market is the market where lots of firm are available in the…
Q: Which of the following document is NOT a part of the International Bill of Human Rights? O 1.…
A: The United Nations' five key human rights treaties make up the International Bill of Human Rights,…
Q: Suppose the production function for a product is given by q = 100KL. If the price of capital is $81…
A: Given: Production Function : q=100KL Price of capital (r) = $81 per day Price of labor (w) = $27…
Q: What is Supplies of Liquid Funds? What are Laws Limiting Bank Lending and Risk?
A: Liquid funds are mutual funds that invest in assets having a residual maturity of up to 91 days.…
Q: When you take your job, you decide to start saving for your retirement. You put $5,000/yr into the…
A: Monthly investment A= 5000 Rate of interest = 8% / year We have to calculate the amount of total…
Q: Given the utility function U = 10X1.5Y0.5 a. Suppose prices of goods PX = 10, PY = 5, and income I…
A: The utility function is the measure of satisfaction of the consumers expressed as a function of…
Q: Part 1 : Answer the following Games below. For each game below, please illustrate and show how the…
A: Game Theory is the study of decision making strategies of two individuals or agents where their…
Q: 9. Suppose that in the island country, there are a large number of identical firms. Bot the product…
A: Perfect substitute production function is the one in which only thing which matters to attain a…
Q: Suppose that due ot a fiscal stimulus, there is an increase in disposable incomes of $100 billion in…
A: Here, it is given that the disposable income is $100 billion from which $33 billion is spent on…
Q: There are two types of open market operations carried out by the central bank, dynamic and defensive…
A: Open market operations, sometimes known as OMO are when a central bank buys or sells short-term…
Q: Assume that the demand curve for romance novels has a negative slope. If the price of these novels…
A: The demand curve for a product depicts the inverse relationship between quantity demanded and price,…
Q: If the increase in government spending is $500 and the marginal propensity to consume is .75 then…
A: The change in the real gross domestic product depends on the value of the marginal propensity to…
Q: when number of producers increased and number of buyers increased. Price equilibruim must increase…
A: The Equilibrium price is the point where the demand and the supply curve intersects with each other.…
Q: At time t=0, R$= 10%, R€= 10%, and E$/€=Ee $/€ = 1. Assume that due to a sudden change in…
A:
Q: What action should the Federal Open Market Committee (FOMC) take if it sees signs of inflation…
A: Federal reserve has twin objectives of full employment and stability. Federal reserve seeks to…
Q: Breakdown Approach Salesforce size = Forecasted sales / Average sales per salesperson Sleepy, Inc, a…
A: Sale force size is the planned process for achieving the optimal number of work for the role so ,…
Q: Nilfgaard is a closed economy with no government sector. The country does not exhibit any…
A: At steady state, capital per worker is constant and its rate of change is zero.
Any help with d) and e)
will be appreciated
Step by step
Solved in 4 steps with 1 images
- 2. Paul and Stella play a game with three strategies each, T, M, and B for Paul, and L, C, and R for Stella. Both move simultaneously. The payoffs are given by the following form: Stella L с R Paul T (8,4) (10, 2) (2,3) M (4,2) (10, 1) (5,7) B (1,4) (10, 3) (9,-4) a. Which strategy is dominated? b. What is the pure-strategy Nash equilibrium? Identify all if there are more than one. c. If Paul moved first, so that Stella observed it, which strategy would Paul choose?3. Consider the game represented by the payoff matrix below: R S (12, 12) (8,-5) (25, 14) (50, 12) (26,70) (-2.6) (20, 100) (22,75) C (11,0) (3,25) (24, 26) (50,26) D (5,-10) (16,-8) (13,-8) (50,-20) A B a. Find the Nash equilibria of the game using any suitable method. b. Apply Iterated Elimination of Strictly Dominated Actions (IESDA) to this game. Explain the steps as necessary. Do the Nash equilibria found in part a. survive IESDA? c. Apply Iterated Elimination of (Weakly) Dominated Actions (IEDA) to this game by elim- inating all whakly dominated actions in each round. Explain the steps as necessary. Do the Nash equilibria found in part a, survive IEDAConsider the payoff matrix below, which describes a symmetric A B A 17,17 0,14 B 14,0 8,8 (a) Find all Nash equilibria of this game, including any mixed strategy equilibria. (b) Draw the expected payoff difference diagram for this game, including all the Nash equilibria you found in (a). is (c) What would you expect to occur most frequently when this game played as a lab experiment? Justify your answer using your answers from (a) and (b).
- 3) Consider the following two extensive form games and answer the following questions. How many subgames present in the following games? Find all pure strategies SPNE. Find all pure strategies NE of these games. Game A Game B u (5,3) u (0,2) 2 2 L L (-5,4) d (0,0) 1 1 1 (1,-5) (-10,-10) u R (2,3) A M 2 R 2 r d 1 (8,1) B (2,0) (2,2)(d) Consider a simultaneous-move game between two firms choosing to sell their product at either £6, £7 or £8. The actions and payoffs are given in the matrix below. Firm 2's Prices £6 £7 £8 Firm 1's prices £6 4, 5 3, 5 2, 1 £7 0,4 2, 1 3,0 £8 -1, 1 4, 3 0, 2 What are the Nash equilibria of this game? Game theory is often used by firms competing under an oligopoly as a means of determining their best strategy. Why is game theory a useful tool and which characteristics of an oligopoly make it particularly useful for firms competing in this market structure? One outcome of an oligopoly is that firms may have an incentive to collude. Explain some of the conditions that make collusion more likely to occur and how game theory can explain why collusive agreements often break down.Two workers are on a production line. They each have two actions: exert effort, E, or shirk, S. Effort costs a worker e > 0 and shirking costs them nothing. If two workers do action E a lot of output is produced and the workers earn £3 each. If only one worker chooses action E less output is produced and they both earn £1. The workers earn nothing if they both shirk. (i) Describe this situation as a strategic form game (assuming the workers do not observe each other's effort choice when making their own decision). (ii) For what values of e does this game have strictly dominant strategies? (iii) Describe the Nash equilibria of this game for e = 0,1, 2, 3. (iv) The workers now are re-arranged into a production line. First worker 1 moves and then worker 2 moves. Worker 2 can now see worker l's effort level before they choose their effort. Draw this extensive form game. (v) Find the subgame perfect equilibria of the production-line game for c = 1/2 and c = 3/2.
- The following table contains the possible actions and payoffs of players 1 and 2. Player 1 U M D L 2,10 2,5 8,7 Player 2 C 5,2 11,8 8,4 R 5,4 2,9 8,3 This is a simultaneous move game. In a pure strategy Nash equilibrium of this game, Player 1 receives a payoff of ✓and player 2 receives a payoff of If, instead of playing simultaneously, player 2 moves first, then in the Nash equilibrium player 1 receives a payoff of ✓and player 2 receives a payoff ofFind the unique Nash equilibrium of a game with the following payoff matrix: Player 2 2 4 1 (6, 7) (13, 8) (9, 9) Player 1 3 (4, 4) (7, 7) (7, 6) (7, 7) (11, 11) (7, 13) О a. (3, 2) O b. (5, 4) О с. (11, 11) O d. (1, 6) O e. There is no unique Nash equilibrium.GAME UUU B1 Player B B2 A1 7,13 5, 10 A2 3,8 9,16 Player A A3 5,8 4,7 In Game UUU (see table above), assuming players move simultaneously, Player A choosing A1 and Player B choosing B3 is a Nash equilibrium. Player A choosing A3 and Player B choosing B2 is a Nash equilibrium. Both Player A choosing A1 and Player B choosing B1 and Player A choosing A2 and player B choosing B2 are Nash equilibria in pure strategies Player A choosing A1 and Player B choosing B2 is a Nash equilibrium.
- GAME Z Player A B1 A1 7, 13 A2 3,8 Player B B2 15, 10 9,16 A3 5,8 4,7 In Game Z (see table above), assuming players move simultaneously. Which of the following is true? Player A has a dominant strategy Player B has a dominant strategy Both players have dominant strategies O Neither player has a dominant strategyし(5,3) b I(2,2) も(0,0) (4,12) a (12.4) (0,0) i). List all subgame pertect Nash equilibria and name one Nash eqvilibrivm that is not subgame pertect i). How many strategies does playot and player 2 have?Consider the following game: Player 1 T M B N R (1,2) (1,1) (3,4) (1,-1) L Player 2 (-1,2) (2, -1) (0,1) (4,4) S (3,2) (4,5) (5,4)) (6,1) Q (1,5) (1,2) (4,1) (1,4) a) Does player 1 (the row player) have any dominated strategies. If yes, list all such strategies b) Find all the Pareto Optimal strategy profiles in the game. c) Let 0= (1/2, 0,1/4,1/4). Find BR₂(0).