5. The Bertrand model of duopoly can be understood as a(n) a. Matching pennies game b. Prisoner's dilemma game c. Entry Deterrence game d. Adverse Selection Problem e. Moral Hazard Problem
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- Sometimes oligopolies in the same industry are very different in size. Suppose we have a duopoly where one firm (Film A) is large and the other film (Film B) is small, as the prisoners dilemma box in Table 10.4 shows. Assuming that both films know the payoffs, what is the likely outcome in this case?QUESTION 4 Match each of the terms to their description: Collusion A. an illegal official arrangment where firms work together B. firms work together Differentiated Products Cartel C. a game where cooperation provides the largest gains D. products have features that separate them from others. E. the branch of mathematics that analyzes decision making Game Theory Prisoner's Dilemma Click Save and Submit to save and submit. Click Save All Answers to save all answers. Save All Ar Type here to search 62°Fa. Identify the following scenarios as examples of collusion or competition console market and agree to all raise prices the game b. 1. 3 major companies make up ? 2. GolfPro shop lowers their price to take customers away from their competitors ? ✓ 3. Horion, a phone service company invests heavily in new technology to improve and gain customers ? A. Competition B. Collusion Oligopolies have an incentive to collude because A. US laws promote collusion B. They can increase profit C. competition can be harmful □ D. they can better compete
- 2. Focus on the following Prisoner's Dilemma which is infinitely repeated. Find for what value of the discount factor the grim trigger strategy is a Subgame Perfect Nash Equilibrium of the game. Player 1 D C Player 2 D 0,0 -2,7 с 7,-2 5,528 A payoff matrix shows the payoffs (i.e. bribes) required to government officials for firms undertaking specific actions. A details the actions each firm takes. shows the payoffs to each firm for each possible outcome. is optional in game theory. 29 A player's best response is the strategy that maximizes his payoff given what he thinks the other player will do. a dominant strategy. A В impossible to find when there isn't a Nash equilibrium. a way to avoid the prisoners' dilemma. D 30 Strategic advertising in the cola market significantly expands the size of the market. brings in few new customers and primarily shifts market share among A В rivals. shifts market demand to the right, increasing quantity sold and decreasing prices. has no impact on the market. C D B.13. Which of the following is not true about the Prisoner's dilemma game? A. there is a unique Nash equilibrium. B. there is a dominant strategy for each player. C. The equilibrium outcome maximizes the joint payoffs of the two players. D. the game is being played only once Solve with details explanation and no plagiarism otherwise I will give you downvote
- Question 4 6. A prisoner's dilemma problem can be solved by a. the parties are kept from communicating with each other. b. a third party enforced their cooperation c. the parties were not guilty of the crime the nor s to arrive TOTGT GOOISTOIT1. The table below shows expected payoffs (in $billions) for GM and the United Auto Workers (UAW) as they enter contract negotiations. Strike GM UAW Concede Bargain Hard -20, -10 10, -15 Concede -10, -2 15, 0 a. Using game theory for a one-shot, simultaneous decision game, find all the Nash equilibria. b. Each side enters negotiations threatening to take a hard line (Bargain Hard or Strike). How credible are each of these threats and why (briefly)?mall Dynaco Jains Pynaco gains 4. Synergy and Dynaco are the only two firms in a specific high - tech industry. They face the following payoff matrix as they determine the size of their research budget: Synergy's Deeision Small Bodget Lange Budget Synergy gain $420M Symedgy Dynaco ins Large budget Dynaro gains $30M Synergy Small Dynaco Jains Budget Jains zero Dynae's 2ero gains $70m Synergy Pynaco gains gains #50M Decision a. Does Synergy have a dominant strategy? Explain. b. Does Dynaco have a dominant strategy? Explain. c. Is there a Nash equilibrium for this scenario? Explain. (Hint: Look closely at the definition of Nash equilibrium.)
- 8. In game theory there is not always a dominant strategy b. a Nash equilibrium is a dominant strategy collusion is an example of a cooperative game С. d. all of these0,0 not 4, 10 b advertise Good seller Select all true statements. n Nature Consumer -1,0 Bad seller b -1,-5 advertise n not -6,0 0,0 a. There is a separating equilibrium in this game in which only the good seller advertises. b. There is a separating equilibrium in this game in which only the bad seller advertises. c. There is no separating equilibrium in this game.As soon as possible . Thank you 1.Show a duopoly diagram with the four boxes and explain the Nash Equilibrium (make up plausible #s for all 4 boxes)