1. a) p=. Consider the following game: q= Player 1 Top Bottom Left 3 7 6 0 Player 2 Right This game has a unique mixed strategy equilibrium where Player A chooses Top with probability p, and Bottom with probability (1- p). Also, Player B chooses Left with probability q, and Right with probability (1-q). Calculate the values of p and q that constitute a mixed strategy equilibrium. 2 1 4 1
Q: The price of crude oil has been increasing. The price of a good rises in two cases, when demand…
A: Demand-supply equilibrium: Demand is the aggregate demanded quantity made by all the market…
Q: When a market is in equilibrium, the economic problem has been solved. Comment on the truth or…
A: Market equilibrium refers to the point at which the quantity demand is equal to the quantity…
Q: 25. Suppose that individuals want to carry out more illegal transactions, so they decide to hold…
A: 25) Although the terms "money" and "wealth" are sometimes used interchangeably, economists define…
Q: Suppose the U.S. economy is troubled by inflation. The economy is in equilibrium at a real GDP of…
A: Marginal propensity to consume (MPC) will be computed as change in consumption divided with the…
Q: Argentina can produce either 50 bushels of cherries or 25 bushels of apples using all of its…
A: A country, person, or business that can produce goods or services at a lower opportunity cost than…
Q: Suppose the wholesale market for corn is a perfectly competitive market, and all firms in the corn…
A: Perfect competition refers to the market structure that occurs when all firms sell the same…
Q: During the first 10 years of the life of a certain machine the following were spent for its…
A: It is given that the maintenance cost of the first five years is different from the second half of…
Q: Consider the imaginary nation of Legumina, whose citizens only consume carrots. Assume that the…
A: Citizens only consume carrots Price of carrots = $1 each Plan X: Consumption upto 1000 carrots…
Q: Government-imposed taxes cause reductions in the activity that is being taxed, which has important…
A: Equilibrium in the market occurs where quantity demanded is equal to quantity supplied.
Q: Jevonte is saving money. Jevonte started with $21 and added $17.50 every week. Find the rate of…
A: You can escape life's uncertainties by saving money, which also gives you the chance to live a…
Q: Consider a payoff matrix of a game shown below. In each cell, the number on the left is a payoff for…
A: Dominant strategy is the strategy that doesn't change with the change in opponent's strategy. Nash…
Q: Price 160 150 140 130 120 110 100 90 8828 80 70 60 50 40 30 20 10 0 Steel Market 3 3 2 2 3 3 538 200…
A: Business operations are the acts and procedures that companies use to produce commodities and…
Q: In the figure above, a monopoly will set price b d a C
A: A monopoly firm produces at the intersection of MR and MC curves. A perfectly competitive firm…
Q: For the following events, explain the short-run and long-run effects on output and the price level,…
A: Exports and imports are served as uses and resources/supplies respectively. Exports are the…
Q: Assume the U.S. is a closed economy and that it is starting out in both SR and LR equilibrium.…
A: The rise in mortgage rates and associated drop in housing prices will damage the U.S. economy in the…
Q: A movement along the demand curve, represented by points A and B, is shown in the diagram to the…
A: Price elasticity of demand measures the responsiveness of change in quantity demand to change in…
Q: Suppose the government decides to tax subway tickets, instead. The following graph plots the yearly…
A: Equilibrium in the market occurs at the intersection of the demand and supply curves. At the…
Q: Choose a country of your choice and answer the following questions: I) is there any income…
A: Income is the money received by a person or institution during a certain time period, usually a…
Q: Table 18-14 Suppose that two oil companies-BP and Exxon-own adjacent natural gas fields. The profits…
A: Dominant strategy is the strategy that doesn't change with the change in opponent's strategy. The…
Q: 26. Consider the following table: Income Approach Labor Interest Rent Profit Depreciation Taxes…
A: GDP stands for Gross Domestic Product, which is a measure of the total value of goods and services…
Q: Figure 25-2 Output per Worker Capital per Worker Refer to Figure 25-2. "When the amount of capital…
A: When PPC is a straight-line, it reflects that there is a constant trade-off ratio as production…
Q: Illustrate the impact of a $500 million increase in government spending by adjusting the graph. In…
A: The multiplier effect in AD-AS framework: The main idea behind the multiplier effect is that an…
Q: Name and explain 3 factors that make health different from other economic goods such as Television…
A: Health economics is essential because it investigates how stakeholders' and recipients' economic…
Q: What are the causes and consequences of rise in food prices in Saint Vincent and the Grenadines
A: Price is determined by the market forces demand and supply and when these factors changes then price…
Q: Squeak eClean produces commercial sanitizer used to clean tanker trucks that haul liquid food…
A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…
Q: Johnston Co is a multinational enterprise with business all over the world. The company is currently…
A: Exchange rate movement refers to the fluctuation or change in the value of one currency in relation…
Q: Considerthe following problem. There are five firms producing a homogenous good and competing in…
A: The demand is the willingness of an individual to pay in the market and his ability to purchase the…
Q: Justify the statement. True/False An advancement of technology leads to a boost in the economic…
A: Technology is said to advance when new methods, tools, or procedures are created and put into use to…
Q: 50 At a time when demand for ready-to-eat cereal was stagnant, a spokesperson for the cereal maker…
A: Collusive Oligopoly : A collusive Oligopoly is a market condition wherein the companies operating as…
Q: QUESTION 2 The company received an offer from ParkWay to invest NOW $15,000 and take back annually…
A: In financial analysis, the internal rate of return (IRR) is a statistic used to calculate the…
Q: Suppose the government wishes to eliminate an inflationary gap of $100 billion and the MPC is 0.50.…
A: MPC is the marginal propensity to consume. Spending multiplier is given by the following formula :-…
Q: Scenario: Aggregate banking statistics show that collectively the banks of CountryA hold $300…
A: Given:Required reserves = $300 million Excess reserves = $75 million Deposits = $7,500 million…
Q: Which of the following is a cash outflow? Current year…
A: Cash inflow means that the money going into an entity which could be from investments, sales, or…
Q: During the first 6 months of 2008, the United States imported from Africa, Asia, and Latin America…
A: Consumer surplus is the area below demand curve and above price. Producer surplus is the area below…
Q: Assume a competitive firm faces a market price of $120, a cost curve of: and a marginal cost of:…
A: P = 120 Cost = 13q3+20q+500MC = q2+20
Q: A company earns $18 annually. You discount its future profits by 2% a year due to your impatience…
A: Discount rate is the interest rate used to calculate the present value of future cash flows. It…
Q: Prices have risen by 65% over the last 10 years. What is the average yearly inflation rate over this…
A: Inflation is the increase in price level over a period of time. Inflation rate is the rate at which…
Q: Examine the Jamaica Urban Transport Company (JUT), and advise the government of Jamaica if…
A: The act of giving a specific person, group, or industry financial support—typically from the…
Q: 2. Which of these do NOT result from a price level decrease? A The real value of money increases. B…
A: The real value doesn't include the effect of inflation. The nominal value includes the effect of…
Q: 14. The graph below shows supply and demand curve shifts for the propane market. (Propane is used to…
A: Market equilibrium: At the market equilibrium we have demand equals to supply. Or at market…
Q: Table 24-7 The table below lists the prices of chips and salsa for the year 2018, 2019, 2020. Assume…
A: Inflation rate is the rate at which the price level increases over the period of time. CPI is the…
Q: Sophia is a contestant on a game show and has selected the prize that lies behind door number 3. The…
A: The Monty Hall problem is a classic probability puzzle. In this problem, the player is asked to…
Q: Suppose you have $1000 to invest and you are considering putting your money in either bonds, stocks,…
A: Investment is the method of putting money into assets that create wealth and benefit to to the…
Q: Suppose in a perfectly competitive industry that the market supply and demand forces combine to…
A: A perfectly competitive firm produces at P = MC in the short run. A perfectly competitive firm shut…
Q: Which of the following is included in the economist's definition of investment? the purchase of new…
A: Definition of investment in economics differs from the definition of investment in general.…
Q: The law of supply states that, other things equal, when the price of a good A rises, the supply of…
A: Quantity supplied and supply: The supplied quantity of any commodity reflects the minimum amount of…
Q: True/ False Government always works in the welfare of the economy.
A: Introduction ; In economics, government refers to the entity that has the responsibility and…
Q: The establishment of a new government affect the economy in various ways. Explain how the economy…
A: A collection of people or organizations that wield political power and control over a certain region…
Q: An economy has a fixed price level, no imports, and no income taxes. MPC is 0.9, and real GDP is…
A: The marginal propensity to consumer refers to the change in the consumption following change in the…
Q: Exercise A.6. Mr Smith has a monopoly on housing rentals in a small township. The inverse rental…
A: The demand function is the mathematical relationship between quantity and price. It represents the…
No written by hand solution
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Suppose there are two players playing a game with east or west and south and nerth ways. Find the expected Nash equilibrium by using the concept of probabilities. Player X Left[L) Right|R) Player Y Up(U) (5,6) (0,8) (4,6) Down[D) (0,9)With what probability does player 1 play Down in the mixed strategy Nash equilibrium? (Input your answer as a decimal to the nearest hundredth, for example: 0.14, 0.56, or 0.87). PLAYER 1 Up Down PLAYER 2 Left 97,95 47, 33 Right 8,43 68,91Consider 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.
- 1.a) If the three executives of a fraudulent organization report nothing to the authorities, each gets a payoff of 100. If at least one of them blows the whistle, then those who reported the fraud get 28, while those who didn’t get -100. Suppose they play a symmetric mixed-strategy Nash equilibrium where each is silent (does not report fraud) with probability p. What is p?A, 0.1B, 0.28C, 0.5D, 0.8 b) In a two-player game, with strategies and (some known and some unknown) payoffs as shown below, suppose a mixed-strategy equilibrium exists where 1 plays C with probability 3/4, and Player 2 randomizes over X, Y, and Z with equal probabilities. What are the pure-strategy equilibria of this game? A, (A, Y) and (B, X)B, (A, Z) and (C, Y)C, (B, X) and (C, X)D, (C, X) and (C, Y)In the following games, all payoffs are listed with the row player's payoffs first and the column player's payoffs second (36-40). GAME 5 Player B B1 7,3 A2 3,8 Player A A1 In Game 5 above, in the Nash equilibrium in mixed strategies player A chooses A1 with a 5/9 probability. player A chooses A1 with a 2/9 probability. player A chooses A1 with a 3/9 probability. O player A chooses A1 with a 4/9 probability. B2 5, 10 9,6Here is a Bayesian BOS game. Man has a special preference t1 on boxing while woman has a special preference t2 on opera. Both are in [0,2]. The preference information is private. i.e. Each knows his (her) own preference but does not know the other's preference. The below is the payoff. M/W Boxing Opera Воxing 3+t1,1 0,0 Opera 0,0 1,3+t2 We are checking whether the below strategy profile is a Bayesian Nash Equilibrium. "Man chooses boxing if t1>p while woman chooses opera if t2>g." 1) Given t1, man will choose boxing if t1> /g- 2) Given t2, woman will choose opera if t2> /p- 4) By shoving the simultaneous equations, we get p=q=sqrt(6)-
- Game Theory Consider the entry game with incomplete information studied in class. An incumbent politician's cost of campaigning can be high or low and the entrant does not know this cost (but the incumbent does). In class, we found two pure-strategy Bayesian Nash Equilibria in this game. Assume that the probability that the cost of campaigning is high is a parameter p, 0 < p < 1. Show that when p is large enough, there is only one pure-strategy Bayesian Nash Equilibrium. What is it? What is the intuition? How large does p have to be? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.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 gameE3 Bayesian Game]. Consider a Bayesian game described by a following payoff matrix. Please solve (show your solution). 1. Enumerate all pure strategies for each player. 2. Suppose that player 1 observes his type ?1 = 3. How does player 1 think of the probability of ?2? 3. Find a (pure strategy) Bayesian Nash equilibrium.
- 2. Consider the following Bayesian game with two players. Both players move simultaneously and player 1 can choose either H or L, while player 2's options are G, M, and D. With probability 1/2 the payoffs are given by "Game 1" : GMD H 1,2 1,0 1,3 L 2,4 0,0 0,5 and with probability 1/2 the payoffs are according to "Game 2" : G |M|D H 1,2 1,3 1,0 L 2,4 0,5 0,0 (a) Find the Nash Equilibria when neither player knows which game is actually played. (b) Assume now that player 2 knows which one among the two games is actually being played. Check that the game has a unique Bayesian Nash Equilibrium.Consider the following two-player game with three options for each player. (Payouts are listed for the row player first, then the column player.) player Y layery 3,3 A 1,5 4,4 6,2 K 8,1 3,7 5,2 0,6 1,1 Find a mixed Nash equilibrium for this game. Solution suggestion: Use two variables per player. If p and are the probabilities of selecting the first two strategies, then 1-p-q is the probability of selecting the third strategy. You will need to solve a system of equations.(ii) A mixed strategy profile (p, q) is one in which p = (p,P2.... P) is the mixed strategy of player 1, and q- (g1, q2,..q4) is the mixed strategy of player 2. Show that if p, >0 in a Nash equilibrium profile (p*, q*), the player 2 must also play i with strictly positive probability q'; > 0. (State clearly any theorem you use to show this. You are not required to justify the theorem.) %3D