7. (Brams and Straffin, 1979) In the draft system used in football, basketball, and other professional sports in the United States, the teams having the worst win-loss records in the previous season get first pick of the new players in the draft. The worst team gets first choice, the next-worst team second choice, and so on. After each team has made a draft choice, the procedure is repeated, round by round, until every team has exhausted its choices. Presumably, this system, by giving the worst teams priority in the selection process, makes the teams more competitive the next season. Consider a game with only two teams (A and B) and four players in the draft (1,2,3,4), with preference ordering as follows: A = {1,2, 3,4)and B = {2,3,4,1). Assume that the sets of preferences are common knowledge. Team A is the first-mover. Given this information, answer the following questions: a) If both teams choose sincerely (the best player available given your preferences at every round), what is the outcome of the game? Is it Pareto Optimal? Why or why not? b) To choose sincerely, however, is not an equilibrium in this game. If both teams act rationally, what is the equilibrium of the game? Is it Pareto Optimal? Why or why not? DO NOT USE AI, i will down vote
7. (Brams and Straffin, 1979) In the draft system used in football, basketball, and other professional sports in the United States, the teams having the worst win-loss records in the previous season get first pick of the new players in the draft. The worst team gets first choice, the next-worst team second choice, and so on. After each team has made a draft choice, the procedure is repeated, round by round, until every team has exhausted its choices. Presumably, this system, by giving the worst teams priority in the selection process, makes the teams more competitive the next season. Consider a game with only two teams (A and B) and four players in the draft (1,2,3,4), with preference ordering as follows: A = {1,2, 3,4)and B = {2,3,4,1). Assume that the sets of preferences are common knowledge. Team A is the first-mover. Given this information, answer the following questions: a) If both teams choose sincerely (the best player available given your preferences at every round), what is the outcome of the game? Is it Pareto Optimal? Why or why not? b) To choose sincerely, however, is not an equilibrium in this game. If both teams act rationally, what is the equilibrium of the game? Is it Pareto Optimal? Why or why not? DO NOT USE AI, i will down vote
Chapter10: Monopolistic Competition And Oligopoly
Section: Chapter Questions
Problem 3.9P
Related questions
Question
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working!
Transcribed Image Text:7. (Brams and Straffin, 1979) In the draft system used in football, basketball, and other professional sports in the United
States, the teams having the worst win-loss records in the previous season get first pick of the new players in the draft.
The worst team gets first choice, the next-worst team second choice, and so on. After each team has made a draft
choice, the procedure is repeated, round by round, until every team has exhausted its choices. Presumably, this system,
by giving the worst teams priority in the selection process, makes the teams more competitive the next season. Consider
a game with only two teams (A and B) and four players in the draft (1,2,3,4), with preference ordering as follows: A = {1,2,
3,4)and B = {2,3,4,1). Assume that the sets of preferences are common knowledge. Team A is the first-mover. Given this
information, answer the following questions:
a)
If both teams choose sincerely (the best player available given your preferences at every round), what is the outcome of
the game? Is it Pareto Optimal? Why or why not?
b)
To choose sincerely, however, is not an equilibrium in this game. If both teams act rationally, what is the equilibrium of
the game? Is it Pareto Optimal? Why or why not?
DO NOT USE AI, i will down vote
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Microeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506893
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Macroeconomics: Private and Public Choice (MindTa…
Economics
ISBN:
9781305506756
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning
Economics: Private and Public Choice (MindTap Cou…
Economics
ISBN:
9781305506725
Author:
James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:
Cengage Learning