4.6. A person purchases a dozen eggs and must take them home. Although making trips home is costless, there is a 50 percent chance that all of the eggs carried on one trip will be broken during the trip. This person con- siders two strategies: Strategy 1: Take the dozen eggs in one trip. Strategy 2: Make two trips, taking six eggs in each trip. a. List the possible outcomes of each strategy and the probabilities of these outcomes. Show that, on aver- age, six eggs make it home under either strategy. b. Develop a graph to show the utility obtainable under each strategy. c. Could utility be improved further by taking more than two trinc? How would a .

4.6. A person purchases a dozen eggs and must take them home. Although making trips home is costless, there is a 50 percent chance that all of the eggs carried on one trip will be broken during the trip. This person con- siders two strategies: Strategy 1: Take the dozen eggs in one trip. Strategy 2: Make two trips, taking six eggs in each trip. a. List the possible outcomes of each strategy and the probabilities of these outcomes. Show that, on aver- age, six eggs make it home under either strategy. b. Develop a graph to show the utility obtainable under each strategy. c. Could utility be improved further by taking more than two trinc? How would a .

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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RUSH. Answer for a, b, and c.
Let us see the example of Juan and María given but modify their preferences. It is still the case that they are competitive and are deciding whether to show up at their mom’s house at 8:00 A.M., 9:00 A.M., 10:00 A.M., or 11:00 A.M. But now they don’t mind waking up early. Assume that the payoff is 1 if he or she shows up before the other sibling, it is 0 if he or she shows up after the other sibling, and it is 1 if they show up at the same time. The time of the morning does not matter. Find all Nash equilibria.
**Practice*** Amy and Bob are playing the following board game:(I) Amy starts. She has three possible actions: Pass, Attack, or Defend.(II) Bob observes what Amy chose, and then chooses between three actions with the same names: Pass, Attack, or Defend.(III) If either player passes, or one attacks and the other defends, then the game ends. But if either both players attack, or if both players defend, then Amy has to choose between two actions: Respond or Not Respond. The payoffs are as follows:- If both players pass, both players get a payoff of 0.- If a player attacks and the other player defends, the player that attacks gets a payoff of 1, while the player that defended gets a payoff of 2.- If a player passes but the other player attacks or defends, the player who passes gets a payoff of -1, and the player who attacked or defended gets a payoff of 3.- If both players attack or both players defend:– If Amy responds, she gets a payoff of 4, and Bob gets a payoff of 0.– If Amy does…
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Consider the game between CrossTalk vs GlobalDialog in the attached file. The number of pure strategies of CrossTalk is Blank 1. Fill in the blank, read surrounding text. , and the number of pure strategies of GlobalDialog is Blank 2. Please answer Blank1 and 2 GlobalDialog 14 High Don't Invest 1 GlobalDialog Don't 0,0 0,- Low 6. Invest -,0 GlobalDialog 2 1 High Low 14 High High 2,2 -10,6 CrossTalk Low Low 6, –10 -2,–2 6. CrossTalk CrossTalk
You and your roomate are deciding whether to go to a party or not on Friday. Going to the party is fun and gives a benefit of 4. If you go to the party, there is a 50% chance you will get covid. If you do not attend the party but your roommate does and gets covid, there is 80% chance that you will get covid. The impact of getting covid is -10. If both of you stay home, you will not be exposed to covid and will not have fun, leading to a payoff of 0 for both of you. 3. Construct a game matrix based on the description above and find any (c) Nash equilibria. How would your answer change if one roomate was less social and enjoyed (d) partying less than the other? Change the payoff matrix in a way that is both consistent with one roommate being less social than the other and changes the prediction you found in (a). (Note: if you found multiple possible equilibria in (a), changing the outcome could mean either making one of your prior Nash equilbria the only Nash equilibrium or making an…
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5. The Stag Hunt is a famous coordination game where two hunters must work together to hunt a stag but each one has the option to go solo and hunt a hare. The following payoff matrix depicts such a game: a. b. Hunter A Stag Hare Stag 5,5 4,0 Hunter B Hare 0,4 4,4 List any pure strategy Nash equilibria if they exist. Does the game have a mixed strategy Nash equilibrium? If so, solve for it.
Question 2. Two students are working together to submit their Microeconomics mid-semester group coursework. Each student i can put in the effort x; that costs c(x;), in which x; E [0, 1]. This gives each student the utility of u(x1, x2). Formu- late this situation as a strategic game.
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