Each of the two players independently (and simultaneously with the other) decides whether to go to a play or a concert. Each would rather go with the other to a concert than with them to a play, but prefers this to not being together, in which case they don't care where they go alone. Additionally, each is indifferent between attending the play together and participating in a lottery where both go to the concert with a probability of ¾ and to different events with a probability of ¼. Describe the game in matrix form and find all its equilibria under the assumption that the players have von Neumann-Morgenstern preferences.
Q: Answer the questions below for the economy of Motak using the graph below. The Economy of Motak…
A: Government spending is total finance used by the government to fund various activities. The…
Q: The UK is currently building HS2, a new railway that runs from London to the north of England.…
A: The relationship between the amount required (horizontal axis) and the price of an item or service…
Q: Fiscal sales plan is $450,000,000 Fiscal GM% plan = 45% Goal is to increase GM $ by 4 million…
A: The objective of the question is to calculate the new Gross Margin (GM) percentage needed to achieve…
Q: Two processes can be used for producing a polymer that reduces friction loss in engines. Process T…
A: Net Present Worth (NPW) serves as a crucial financial metric utilized in capital budgeting,…
Q: explain with example the interest rate channel of monetary policy
A: The interest rate channel is an important channel for the central bank of the economy (such as the…
Q: peas. 6.1 Questions from Chapter 3 (Interdependence and the Gains from Trade) 4. Specialization and…
A: Glacier has a comparative advantage in the production of basil, while Congaree has a comparative…
Q: Zoe is trying to decide how to divide her time between her job as a wedding photographer, which pays…
A: The relationship between the lowest price and the number of fossils collected is called the supply…
Q: Give arguments in favor of against the following statements. a) In case of two goods model,…
A: Consumer theory is essential in economics because it investigates how customers might maximize…
Q: Given the following information, what are the values of M1 and M2? Small time deposits Demand…
A: Money supply is the sum of all the available money in the economy which is composed of currencies,…
Q: A firm has two factories characterized by the following total cost functions: F1(y1)=3y², F2(y2) =…
A: The entire amount of money spent to produce a certain commodity or unit is referred to as total…
Q: 940 535 490 69 265 220 175 0 1900 2800 SMC 3700 ATC AVC The figure above shows cost curves for a…
A: Microeconomic firm theory examines how businesses maximize profits through production, resource…
Q: The US government sends $1,550,000,000 in tax rebate stimulus checks to American citizens. On…
A: answer is given belowExplanation:To calculate the multiplier based on American spending behavior, we…
Q: List the chief advantages and shortcomings of using breakeven analysis in pricing decisions.
A: Pricing decisions play an important role in firm theory as they impact sales, earnings, positioning…
Q: Richland and Poorland have identical production functions, depreciation rates, and labor…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: onsumer with utility
A: Arrow-Debreu charges represent the costs of contingent claims on future states of the arena. They…
Q: The concept of diminishing returns to a factor of production applies not only to capital but to…
A: The concept of diminishing returns to a factor of production is a fundamental economic principle…
Q: Required Information An Investment broker that Ava trusts recommended that she purchase a $50,000,…
A: A bond is classified as a financial instrument that is issued by an organization to raise capital.…
Q: Tex-House builds and sells houses for $200,000 each. The firms fixed costs are $3,000,000. 50…
A: Should the firm make the change?Currently, the firm is making $2,000,000 in profits, with the…
Q: are Consider an economy inhabited by George and Harriet, whose utility functions UG= (ac)1/2 (bg)…
A: Pareto optimal allocation refers to a state of resource allocation wherein it is impossible to make…
Q: Does this game have an iterated dominance equilibrium? Find the best responses of the players. Find…
A: In a Nash Equilibrium, each player’s strategy is optimal when considering the decisions of other…
Q: Chemco Enterprises is the manufacturer of Ultra-Dry, a hydrophobic coating that will waterproof…
A: Given:First Cost=$43000Annual costs=$18000Annual Revenue=$27000Salvage value=$4000Number of years=5
Q: Required information Spectra Scientific of Santa Clara, California, manufactures Q-switched…
A: Cash flow refers to the net amount of cash and cash equivalents flowing into and out of a business…
Q: 2. Suppose there are n identical consumers, each with a utility function u(x, y): = ax = x²+y. Each…
A: The objective of the question is to understand the consumer behavior in terms of utility, demand,…
Q: Assume that at the end of 2021, the US government will have a 30 trillion (i.e. 30,000bn) dollars of…
A: In the face of globalization, the practice of maintaining budget deficits has gained favor. Most…
Q: If there is no speculative element in the Money Demand Function, while the other functions remain in…
A: Money demand function is the relationship between different economic variables and the total money…
Q: " QUANTITY P Complete the flowing table by ing in the quantity, the price buyer pay, and the price…
A: Tax incidence refers to the effect of a newly imposed tax on people and businesses. When a tax is…
Q: 5. The table provides data on income and demand for good X and Y. Period 1 2 3 4 5 Income Px $10,000…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Price ($) 12 10 8 Consider a town with three residents. The residents' demand curves for various…
A: Demand represents the willingness of consumers to purchase the goods and services in the…
Q: Safety Corp. is a manufacturer of personal protective equipment (PPE) that produces equipment such…
A: The total product is depicted as a function of one variable while other inputs are held constant. It…
Q: Suppose that under TANF, your state provides an income guarantee of $2,000 and a benefit reduction…
A: Given information:Temporary Assistance for Needy Families (TANF) program provides:Income guarantee:…
Q: Suppose that you are an otherwise law-abiding college professor earning $80,000 a year. Suppose…
A: The term "marginal benefit" (MB) describes the additional value or satisfaction a customer receives…
Q: Consider the game shown in Figure 3. Let A denote the probability that player 1 plays a, B the…
A: Game theory: The part of mathematics that is used in economic decision-making. Usually, two players…
Q: Inflation has been 2% per year in the last couple of years. At the same time, the price of paella…
A: The objective of the question is to calculate the present value of selling 1000 paella pans annually…
Q: 1. Consider two firms producing hats, A and B. The demand functions are as follows: 9A (PAPB) =…
A: Demand measures the willingness and the ability of the individual to pay for the commodity. The…
Q: ง C D.I. Reliau, a line manufacturer, wants to select one of three feasible prototype designs for a…
A: Minimum expected opportunity loss (MEOL) is a concept used in decision theory to compute the best…
Q: A new type of synthetic netting has been developed that increases the size of each fishing boat's…
A: The question is asking about the impact of an increase in the supply of sardines on the equilibrium…
Q: Webby Inc. is a web development company. Webby's monthly production function for developing websites…
A: Marginal product refers to the additional output produced by using one more unit of a particular…
Q: The table describes the production function of John's T-shirt firm. John can hire as many workers as…
A: A production function is a mathematical representation of the relationship between the inputs used…
Q: 15. All the following statements regarding the holding of the WTO dispute settlement body in United…
A: Trade ties between the USA and the Caribbean encompass diverse sectors like tourism, agriculture,…
Q: The citizens of Blingaling buy bling in a competitive market. Bling is sold by competitive firms…
A: Pareto Optimal Allocation: A Pareto optimal allocation is a distribution of resources where it is…
Q: The following graph shows the weekly market for sweatpants in some hypothetical economy. Suppose the…
A: The tax is a fixed mandatory amount imposed by the government on the consumers and producers in the…
Q: Suppose the demand and supply for fountain head university College are given as follows Qd =18 +…
A: Demand functions display how much of an item or service that shoppers are willing to shell out at…
Q: The market below depicts supply, demand and marginal social cost in the widget market. 1.00 0.90…
A: Externality is the external cost of production of a particular good. It can be both positive or…
Q: The unit labour requirements of the production of cotton are 2 and 3 and for wheat is 4 and 5 for…
A: Given:Labor input in Lincolnland: 400 units.Labor input in Smithland: 200 units.Unit labor…
Q: if the price elasticity of demand for a product is 2.5, then a price cut from $2.00 to $1.80…
A: The price elasticity of demand for a product is 2.5.The price reduces from $2.00 to $1.80.
Q: The cost data in the following table are for Marshall's Meats, a perfectly competitive firm. Round…
A: The output and the total cost of production is provided. OutputTotal…
Q: Drive the first order Condition Maximization for Intermediate good proclucers with respect to P+ (1)…
A: A company aiming to make the maximum profit by selling goods or services is known as profit…
Q: 3. Suppose the minimum efficient scale of an industry is at 100 units of output. At this point,…
A: Demand measures the willingness and the ability of the individual to pay for the commodity. The…
Q: Please don't provide handwriting solution Vipsana's Gyros House sells gyros. She incurs a fixed cost…
A: Vipsana's total cost per day when she produces 50 gyros is $340.Explanation:1. Variable Cost:Cost…
Q: Assets Liabilities + Net Worth Reserves $50,000 Checkable Deposits $120,000 Loans 75,000 Stock…
A: The aggregate money supply reflects all circulating currency, demand deposits, and liquid assets…
Each of the two players independently (and simultaneously with the other) decides whether to go to a play or a concert. Each would rather go with the other to a concert than with them to a play, but prefers this to not being together, in which case they don't care where they go alone. Additionally, each is indifferent between attending the play together and participating in a lottery where both go to the concert with a probability of ¾ and to different events with a probability of ¼. Describe the game in matrix form and find all its equilibria under the assumption that the players have von Neumann-Morgenstern preferences.
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 1 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- Deborah is at the casino and is considering playing Roulette. In Roulette, a ball drops into one of 36 slots on a spinning wheel. 17 of the slots are red, 17 are black, and 2 are green. Each slot is equally likely and occurs with probability 1/36. Deborah bets $1.00 on black. If the ball drops into a black slot she receives $2.00 and if it drops into a red or green slot, she receives nothing. The expected value of Deborah's bet (after subtracting the $1.00 she bet) is $ Given that Deborah makes this bet, she must beDeborah is at the casino and is considering playing Roulette. In Roulette, a ball drops into one of 36 slots on a spinning wheel. 17 of the slots are red, 17 are black, and 2 are green. Each slot is equally likely and occurs with probability 1/36. Deborah bets $1.00 on black. If the ball drops into a black slot she receives $2.00 and if it drops into a red or green slot, she receives nothing. a) The expected value of Deborah’s bet (after subtracting the $1.00 she bet) is $________________ b) Given that Deborah makes this bet, is she risk adverse, risk neutral, or risk loving?David wants to auction a painting, and there are two potential buyers. The value for eachbuyer is either 0 or 10, each value equally likely. Suppose he offers to sell the object for $6, and the two buyers simultaneously accept or reject. If exactly one buyer accepts, the object sold to that person for $6. If both accept, the object is allocated randomly to the buyers, also for $6. If neither accepts, the object is allocated randomly to the bidders for $0. (a) Identify the type space and strategy space for each buyer. (b) Show that there is an equilibrium in which buyers with value 10 always accept. (c) Show that there is an equilibrium in which buyers with value 10 always reject.
- Arielle is a risk-averse traveler who is planning a trip to Canada. She is planning on carrying $400 in her backpack. Walking the streets of Canada, however, can be dangerous and there is some chance that she will have her backpack stolen. If she is only carrying cash and her backpack is stolen, she will have no money ($0). The probability that her backpack is stolen is 1/5. Finally assume that her preferences over money can be represented by the utility function U(x)=(x)^0.5 Suppose that she has the option to buy traveler’s checks. If her backpack is stolen and she is carrying traveler’s checks then she can have those checks replaced at no cost. National Express charges a fee of $p per $1 traveler’s check. In other words, the price of a $1 traveler’s check is $(1+p). If the purchase of traveler’s checks is a fair bet, then we know that the purchase of traveler checks will not change her expected income. Show that if the purchase is a fair bet, then the price (1+p) = $1.25.Phil, Stu, and Doug are deciding which fraternity to pledge. They all assign a payoff of 5 to pledging Phi Gamma and a payoff of 4 to Delta Chi. The payoff from not pledging either house is 1. Phi Gamma and Delta Chi each have two slots. If all three of them happen to choose the same house, then the house will randomly choose which two are admitted. In that case, each has probability 2/3 of getting in and probability 1/3 of not pledging any house. If they do not all choose the same house, then all are admitted to the house they chose. Find a symmetric Nash equilibrium in mixed strategies.Rita is playing a game of chance in which she tosses a dart into a rotating dartboard with 8 equal-sized slices numbered 1 through 8. The dart lands on a numbered slice at random. This game is this: Rita tosses the dart once. She wins $1 if the dart lands in slice 1, $2 if the dart lands in slice 2, $5 if the dart lands in slice 3, and $8 if the dart lands in slice 4. She loses $3 if the dart lands in slices 5, 6, 7, or 8. (If necessary, consult a list of formulas.) (a) Find the expected value of playing the game. | dollars (b) What can Rita expect in the long run, after playing the game many times? O Rita can expect to gain money. She can expect to win dollars per toss. Rita can expect to lose money. She can expect to lose dollars per toss. O Rita can expect to break even (neither gain nor lose money).
- Matthew is playing snooker (more difficult variant of pool) with his friend. He is not sure which strategy to choose for his next shot. He can try and pot a relatively difficult red ball (strategy R1), which he will pot with probability 0.4. If he pots it, he will have to play the black ball, which he will pot with probability 0.3. His second option (strategy R2) is to try and pot a relatively easy red, which he will pot with probability 0.7. If he pots it, he will have to play the blue ball, which he will pot with probability 0.6. His third option, (strategy R3) is to play safe, meaning not trying to pot any ball and give a difficult shot for his opponent to then make a foul, which will give Matthew 4 points with probability 0.5. If potted, the red balls are worth 1 point each, while the blue ball is worth 5 points, and the black ball 7 points. If he does not pot any ball, he gets 0 point. By using the EMV rule, which strategy should Matthew choose? And what is his expected…$11. Anne and Bruce would like to rent a movie, but they can't decide what kind of movie to get: Anne wants to rent a comedy, and Bruce wants to watch a drama. They decide to choose randomly by playing "Evens or Odds." On the count of three, each of them shows one or two fingers. If the sum is even, Anne wins and they rent the comedy; if the sum is odd, Bruce wins and they rent the drama. Each of them earns a payoff of 1 for winning and 0 for losing "Evens or Odds." (a) Draw the game table for "Evens or Odds." (b) Demonstrate that this game has no Nash equilibrium in pure strategies.Angel, Bianca, Clara are independent farmers, and they are deciding which crop to cultivate. They usually select tomatoes because it makes $100 in profits with a probability of 100%. A foreigner just visited them and told them they can crop this new vegetable called amaranta. However, it only grows half the time. If someone grows it, they will make $500 in profits with a probability of 50% and $0 with a probability of 50%. The foreigner sells the amaranta seeds at p. But, since she wants to promote amaranta worldwide, she will only charge the seeds if the amaranta grows. In other words, if Angel, Bianca or Clara cultivate amaranta, they will mak $500 - p in profits with a probability of 50% and $0 with a probability of 50%. Assume Angel, Bianca and Clara can only grow either tomatoes or amaranta, but not both at the same time. 10.3 If the utility function of Clara with respect to money is Uc between growing tomatoes and amaranta? w?, for which value of p is she indifferent
- A Bank has foreclosed on a home mortgage and is selling the house at auction. There are two bidders for the house, Zeke and Heidi. The bank does not know the willingness to pay of these three bidders for the house, but on the basis of its previous experience, the bank believes that each of these bidders has a probability of 1/3 of valuing it at $800,000, a probability of 1/3 of valuing at $600,000, and a probability of 1/3 of valuing it at $300,000. The bank believes that these probabilities are independent among buyers. If the bank sells the house by means of a second- bidder, sealed-bid auction, what will be the bank’s expected revenue from the sale? The answer is 455, 556. Please show the steps in details thank you!Three players (player 1, player 2 and player 3) each chooses a positive integer QE {1, 2, 3, . 100}. If all three players choose the same integer Q, each player gets $100/3. If all three players choose different integers, the player with the largest integer gets $100, and the two other players get $0. If two players choose the same integer Q, and the third player chooses a different integer Q', then the player playing Q' gets $0, and the two players who played Q get $50 each. Find 2 Nash equilibriums in this game. ....Boris and Angela are negotiating a new trade deal, which resembles a modified centipede game. When it is their turn, each of them decides whether to cooperate (C) or to decline (D). Unfortunately, Angela is not sure how much time Boris has for the negotiations before he needs to leave to talk to Emmanuel. With probability p = 4/5, Boris will stay and insist on making the final proposal (long game, L). With probability 1 − p = 1/5, Boris will have to rush off, so that the game ends after Angela’s move (short game, S). Boris has perfect knowledge of his schedule. The structure and payoffs are represented in the game tree below (Attached picture). (a) Specify the set of possible histories H of the game. Underline terminal histories.(b) Specify the set of possible strategies for Boris and Angela.(c) How many subgames does this game have? Indicate all subgames in this game