Assume that the two universities in USA (UA and UAA) are competing with one another to attract top students to join their PhD programs. To attract the best students, university management offers scholarships so that students will choose to further their studies at their universities. Assuming that there are two types of scholarship packages offered: Premier Scholarships (which is more attractive but costs more to the university) and Basic Scholarships. If both universities offers the same scholarship package, they will divide the number of students in a 50%-50% ratio. If one of the university offers the Premier Scholarship and the other university offers the Basic Scholarship, the university that offers the Premier Scholarship will attract 80% of the top students. [Note: Assume that the payoff to the university is in the form: (% of top students to UA; % top students to UAAJ. (a) From the above information, develop a payoff matrix for this game in the table below. Please make sure you label all empty boxes completely.
Assume that the two universities in USA (UA and UAA) are competing with one another to attract top students to join their PhD programs. To attract the best students, university management offers scholarships so that students will choose to further their studies at their universities. Assuming that there are two types of scholarship packages offered: Premier Scholarships (which is more attractive but costs more to the university) and Basic Scholarships. If both universities offers the same scholarship package, they will divide the number of students in a 50%-50% ratio. If one of the university offers the Premier Scholarship and the other university offers the Basic Scholarship, the university that offers the Premier Scholarship will attract 80% of the top students. [Note: Assume that the payoff to the university is in the form: (% of top students to UA; % top students to UAAJ. (a) From the above information, develop a payoff matrix for this game in the table below. Please make sure you label all empty boxes completely.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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MICROECONOMICS
![Assume that the two universities in USA (UA and UAA) are competing with one another to
attract top students to join their PhD programs. To attract the best students, university
management offers scholarships so that students will choose to further their studies at their
universities. Assuming that there are two types of scholarship packages offered: Premier
Scholarships (which is more attractive but costs more to the university) and Basic Scholarships.
If both universities offers the same scholarship package, they will divide the number of students
in a 50%-50% ratio. If one of the university offers the Premier Scholarship and the other
university offers the Basic Scholarship, the university that offers the Premier Scholarship will
attract 80% of the top students. [Note: Assume that the payoff to the university is in the form: (% of top
students to UA; % top students to UAA].
(a) From the above information, develop a payoff matrix for this game in the table below.
Please make sure you label all empty boxes completely.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8e66c259-f8d4-400f-95c2-10846a2561fd%2Fa587801f-043a-4f95-92ff-d656f3b901d4%2Fdrismg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Assume that the two universities in USA (UA and UAA) are competing with one another to
attract top students to join their PhD programs. To attract the best students, university
management offers scholarships so that students will choose to further their studies at their
universities. Assuming that there are two types of scholarship packages offered: Premier
Scholarships (which is more attractive but costs more to the university) and Basic Scholarships.
If both universities offers the same scholarship package, they will divide the number of students
in a 50%-50% ratio. If one of the university offers the Premier Scholarship and the other
university offers the Basic Scholarship, the university that offers the Premier Scholarship will
attract 80% of the top students. [Note: Assume that the payoff to the university is in the form: (% of top
students to UA; % top students to UAA].
(a) From the above information, develop a payoff matrix for this game in the table below.
Please make sure you label all empty boxes completely.
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