Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Question
Chapter 20.1, Problem 6Q
To determine
Describe the optimal strategy for the first player.
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Consider a beauty-contest game in which n players simultaneously pick a number between zero and 100 inclusive; the person whose number is closer to half of the average number wins a prize.
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Chapter 20 Solutions
Microeconomics
Ch. 20.1 - Prob. 1QCh. 20.1 - Prob. 2QCh. 20.1 - Prob. 3QCh. 20.1 - Prob. 4QCh. 20.1 - Prob. 5QCh. 20.1 - Prob. 6QCh. 20.1 - Prob. 7QCh. 20.1 - Prob. 8QCh. 20.1 - Prob. 9QCh. 20.1 - Prob. 10Q
Ch. 20.A - Netflix and Hulu each expects profit to rise by...Ch. 20.A - Prob. 2QECh. 20 - Prob. 1QECh. 20 - Prob. 2QECh. 20 - Prob. 3QECh. 20 - Prob. 4QECh. 20 - Prob. 5QECh. 20 - Prob. 6QECh. 20 - Prob. 7QECh. 20 - Prob. 8QECh. 20 - Prob. 9QECh. 20 - Prob. 10QECh. 20 - Prob. 11QECh. 20 - Prob. 12QECh. 20 - Prob. 13QECh. 20 - Prob. 14QECh. 20 - Prob. 15QECh. 20 - Prob. 16QECh. 20 - Prob. 1QAPCh. 20 - Prob. 2QAPCh. 20 - Prob. 3QAPCh. 20 - Prob. 4QAPCh. 20 - Prob. 5QAPCh. 20 - Prob. 6QAPCh. 20 - Prob. 1IPCh. 20 - Prob. 2IPCh. 20 - Prob. 3IPCh. 20 - Prob. 4IPCh. 20 - Prob. 5IPCh. 20 - Prob. 6IPCh. 20 - Prob. 7IP
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- Describe the game and find all Nash equilibria in the following situation: Each of two players chooses a non-negative number. In the choice (a1, a2), the payoff of the first player is equal to a1(a2 - a1), and the payoff of the second player is equal to a2(1 – a1 – a2).arrow_forwardWhich player (if any) has a dominate strategy? What is the Nash Equilibrium of this game? Does the game satisfy the definition of prisoner dilemma?arrow_forwardChris Evans Party Don't Party Paparazzo Stalk 3,4 1,1 Don't Stalk 4,2 1,2 Suppose a sequential game in which Paparazzo moves first. What is the subgame perfect Nash equilibrium? (Stalk; Party if Paparazzo chooses Stalk, and Party if Paparazzo chooses Don't Stalk). (Stalk; Party if Paparazzo chooses Stalk, and Don't Party if Paparazzo chooses Don't Stalk). O (Don't Stalk; Party if Paparazzo chooses Stalk, and Party if Paparazzo chooses Don't Stalk). (Don't Stalk; Party if Paparazzo chooses Stalk, and Don't Party if Paparazzo chooses Don't Stalk).arrow_forward
- Table 15.4, Prisoner Dilemma. Suppose the game starts with both Jesse and Frank planning to “Stay Mum” in the lower right cell. Discuss how each player would evaluate the situation and decide whether to change decisions. If each player makes decisions to minimize the penalty, in which cell will this game end? Is there a Nash equilibrium?arrow_forwardFind all Nash equilibria for the two-player game (image attached). Provide necessary computation.arrow_forwardIn the sequential games such as the sequential Battle of the Sexes, why does the Nash equilibrium allow for outcomes with noncredible threats?arrow_forward
- Switch the payoffs in cells (A, A) and (D, D). What is the pure strategy Nash equilibrium outcome if there is one?arrow_forwardConsider a game where player A moves first, choosing between Left and Right. Then, after observing player A’s choice, player B moves next choosing between Up and Down. Which of the following is true? This is a game where players A and B have the same number of strategies. Player A will get a higher payoff than player B as A moves first. This is game will only have one Nash equilibrium. This is a game of perfect information.arrow_forwardReview Chapter 15, Table 15.4, Prisoner Dilemma. Suppose the game starts with both Jesse and Frank planning to “Stay Mum” in the lower right cell. Discuss how each player would evaluate the situation and decide whether to change decisions. If each player makes decisions to minimize the penalty, in which cell will this game end? Is there a Nash equilibrium?arrow_forward
- A special situation that is taken from game theory where two individuals, even though they would benefit from working together, have incentives to act differently is calledarrow_forwardConsider the following simultaneous move game where player 1 has two types. Player 2 does not know if he is playing with type a player 1 or type b player 1. Player 2 C D Player 1 A 12,9 3,6 B 6,0 6,9 C D A 0,9 3,6 B 6,0 6,9 Type a Player 1 Prob = 2/3 Type b Player 1 Prob = 1/3 Find the all the possible Bayesian Nash Equilibriums (BNE) of this game.arrow_forwardConstruct the prisoners dillema game and determine Nash equilibriumarrow_forward
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