a. Only the US imposes a tax: Tu = 2, TF = 0Profits (USA, Fiji) = 10 + 11 = 21Total Emissions(USA, Fiji) = 0 + 100 = 100=b. Only Fiji imposes a tax: TFC.= 2, Tu = 0Profits (USA, Fiji) = 11 + 10 = 21Total Emissions(USA, Fiji) = 900 + 0 = 900Both countries impose a tax: Tu = Tf = 2Profits (USA, Fiji) = 10 + 10 = 20Total Emissions(USA, Fiji) = 0 + 0 = 0d. Neither country imposes a tax: Tu == TF = 0Profits(USA, Fiji) = 11 + 11 = 22Total Emissions(USA, Fiji) = 900 + 100 = 10001. Using these results, Represent the interaction between the twogovernments as a static game: who are the players, what are their actions,and what are the payoffs (you should use a table to show the payoffs)

In game theory, a static game is a game where all players make their decisions simultaneously,…

a. Only the US imposes a tax: Tu = 2, TF = 0 Profits (USA, Fiji) = 10 + 11 = 21 Total Emissions (USA, Fiji) = 0 + 100 = 100 b. Only Fiji imposes a tax: TF = 2, Tu = 0 Profits (USA, Fiji) = 11 + 10 = 21 Total Emissions(USA, Fiji) = 900 + 0 = 900 Both countries impose a tax: Tu = TF = 2 Profits(USA, Fiji) = 10 + 10 = 20 Total Emissions(USA, Fiji) = 0 + 0 = 0 C. d. Neither country imposes a tax: T₁ = TF = 0 Profits (USA, Fiji) = 11 + 11 = 22 Total Emissions (USA, Fiji) = 900 + 100 = 1000 1. Using these results, Represent the interaction between the two governments as a static game: who are the players, what are their actions, and what are the payoffs (you should use a table to show the payoffs)

a. Only the US imposes a tax: Tu = 2, TF = 0 Profits (USA, Fiji) = 10 + 11 = 21 Total Emissions (USA, Fiji) = 0 + 100 = 100 b. Only Fiji imposes a tax: TF = 2, Tu = 0 Profits (USA, Fiji) = 11 + 10 = 21 Total Emissions(USA, Fiji) = 900 + 0 = 900 Both countries impose a tax: Tu = TF = 2 Profits(USA, Fiji) = 10 + 10 = 20 Total Emissions(USA, Fiji) = 0 + 0 = 0 C. d. Neither country imposes a tax: T₁ = TF = 0 Profits (USA, Fiji) = 11 + 11 = 22 Total Emissions (USA, Fiji) = 900 + 100 = 1000 1. Using these results, Represent the interaction between the two governments as a static game: who are the players, what are their actions, and what are the payoffs (you should use a table to show the payoffs)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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