Homework 5 Econ 102 Fall 2023

docx

School

Swarthmore College *

*We aren’t endorsed by this school

Course

031

Subject

Economics

Date

Feb 20, 2024

Type

docx

Pages

Uploaded by SargentMosquitoMaster1060

Econ 102 Homework #5 McLeod Due by 11:59pm, Monday, November 13th. Name (please print) __________Alexander Falsone_________________ PSU ID # _________965712919______________________________ Instructions: Please Read Carefully Please download and print out this form. After you have written your answers, scan it and upload it to Canvas. There are 50 possible points on this homework assignment. Late homework will not be accepted!

1. (18 Total Points) Suppose that two players are playing the following game. Player 1 can choose either Top or Bottom, and Player 2 can choose either Left or Right. The payoffs are given in the following table: Player B Player A Left Right Top 2 6 7 9 Bottom 6 3 4 1 where the number on the left is the payoff to Player A, and the number on the right is the payoff to Player B. A) (2 points) Does player A have a dominant strategy, and if so what is it? Player A does not have a dominant strategy. B) (2 points) Does player B have a dominant strategy and if so what is it? Player B does not have a dominant strategy. C) (4 points) For each of the following strategy combinations, write TRUE if it is a Nash Equilibrium, and FALSE if it is not: i) Top/Left FALSE ii) Top/Right TRUE iii) Bottom/Left TRUE iv) Bottom Right FALSE D) (4 points) For each of the following strategy combinations, write TRUE if it is Pareto

Efficient, and FALSE if it is not: i) Top/Left FALSE ii) Top/Right FALSE iii) Bottom/Left FALSE iv) Bottom Right FALSE E) (2 points) Suppose the game is played where Player A chooses their strategy first. Player 2 observes Player A’s strategy choice, then Player B chooses their strategy. Using the backward induction method we discusses in class, what will be the outcome of the game? (Circle the correct answer.) i) Top/Left ii) Top/Right iii) Bottom/Left iv) Bottom Right F) (2 points) What is Player A’s Maximin Strategy? ______Bottom_____________ G) (2 points) What is Player B’s Maximin Strategy? ______Left____________

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

2. (18 Total Points) Suppose that two players are playing the following game. Player 1 can choose either Top or Bottom, and Player 2 can choose either Left or Right. The payoffs are given in the following table: Player B Player A Left Right Top 2 9 6 10 Bottom 1 11 8 1 where the number on the left is the payoff to Player A, and the number on the right is the payoff to Player B. A) (2 points) Does player A have a dominant strategy, and if so what is it? Player A does not have a dominant strategy. B) (2 points) Does player B have a dominant strategy and if so what is it? Player B does not have a dominant strategy. C) (4 points) For each of the following strategy combinations, write TRUE if it is a Nash Equilibrium, and FALSE if it is not: i) Top/Left FALSE ii) Top/Right FALSE iii) Bottom/Left FALSE iv) Bottom Right FALSE D) (4 points) For each of the following strategy combinations, write TRUE if it is Pareto

Efficient, and FALSE if it is not: i) Top/Left TRUE ii) Top/Right TRUE iii) Bottom/Left TRUE iv) Bottom Right TRUE E) (2 points) Suppose the game is played where Player A chooses their strategy first. Player 2 observes Player A’s strategy choice, then Player B chooses their strategy. Using the backward induction method we discusses in class, what will be the outcome of the game? (Circle the correct answer.) i) Top/Left ii) Top/Right iii) Bottom/Left iv) Bottom Right F) (2 points) What is Player A’s Maximin Strategy? _________________________ G) (2 points) What is Player B’s Maximin Strategy? _________________________

3. (16 points) Suppose a group of cattle ranchers each have $100 to spend. The farmers can either purchase a steer for $100, and let it graze in a common grazing area, or they can buy a bond with the $100 which receives an interest rate of 6%. The table below gives the value of each steer after it has been grazing for one year. # of steers Price per steer Total Value of the Steers Marginal Value of This Steer 1 $132 2 $126 3 $120 4 $114 5 $108 6 $102 a) (12 points) Fill in the two blank columns above. b) (2 points) If the ranchers put their steers in the grazing area one at a time and act only in their self interest, how many steers will be put on the grazing area?

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

c) (2 points) If the ranchers work together to maximize their total income, how many steers will be put on the grazing area?

Related Documents

Naming variables Assignment-2-4.xlsx

Unit 1 Assignment.docx

Case Accounting.pdf

final pear essay.pdf

International Business.docx

Homework 5 Econ 102 Fall 2023-2.pdf

HW1_Solution.pdf

HW1.docx

M7 Adaptive Quiz_Chapter 10.pdf

ECO4199-takehome-work.pdf

Problem Set #3.docx

Summary from Practice Test.docx

Recommended textbooks for you

Managerial Economics: Applications, Strategies an...

Economics

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:Cengage Learning

Microeconomics A Contemporary Intro

Economics

ISBN:9781285635101

Author:MCEACHERN

Publisher:Cengage

Managerial Economics: A Problem Solving Approach

Economics

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Cengage Learning

Economics Today and Tomorrow, Student Edition

Economics

ISBN:9780078747663

Author:McGraw-Hill

Publisher:Glencoe/McGraw-Hill School Pub Co

MACROECONOMICS FOR TODAY

Economics

ISBN:9781337613057

Author:Tucker

Publisher:CENGAGE L

Micro Economics For Today

Economics

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Cengage,

SEE MORE TEXTBOOKS

Recommended textbooks for you

Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Microeconomics A Contemporary Intro
Economics
ISBN:9781285635101
Author:MCEACHERN
Publisher:Cengage
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Economics Today and Tomorrow, Student Edition
Economics
ISBN:9780078747663
Author:McGraw-Hill
Publisher:Glencoe/McGraw-Hill School Pub Co
MACROECONOMICS FOR TODAY
Economics
ISBN:9781337613057
Author:Tucker
Publisher:CENGAGE L
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,