f) Discuss how the Barro-Gordon model can be described by game theory. Show the game including the strategies and the outcomes. There is no need to re-solve the model but you can refer to your solution from question 1. g) Discuss what is the Nash equilibrium. h) Discuss what is the cooperative solution. i) Can you show the problem of time-inconsistency using this game?

f) Discuss how the Barro-Gordon model can be described by game theory. Show the game including the strategies and the outcomes. There is no need to re-solve the model but you can refer to your solution from question 1. g) Discuss what is the Nash equilibrium. h) Discuss what is the cooperative solution. i) Can you show the problem of time-inconsistency using this game?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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