Кееpproduction$200 million$300 millionUsing what you know about the prisoner'sdilemma, what would be the profit for Antel andconstantIMD in millions?(cooperateAntel profitAntel profitis $20 millionis $200 millionAnteloptionsIMD profit isIMD profit is$20 million$100 millionIncreaseproduction (actindependently)Antel profitAntel profitis $100 millionis $300 millionAntel profit: SmillionmillionIMD profit: SWhat would be the best collective option for both firms?Select all of the reasons Antel and IMD would make moreprofit at the original constant production level?соорerateBecause overall demand for computer chipsact independentlywill increaseBecause they can both charge more for the productat the given level of productionBecause it restricts the supply of computer chips

The aforemention game belongs to the prisioner’s dilemma where each player (Antel and IMD) both…

Answered: Кееp production $200 million $300…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Subgame Perfect Equilibrium (a) Find Subgame Perfect Equilibrium P1 (2,4) L P2 Out X (0, Q1 (10-Q₁1)) C P2 Y Ꭱ (4,4) (3,1) (2, 2) (-1,-1) (b) Entry with fixed cost Find Subgame Perfect Equilibrium P1 In Q2 U P1 P2 P₂ D (23 (10Q2 Q3) — 3, Q2 (10- Q2 - Q3))
fnan421 Word Gözden Geçir Görünüm Varam V Ne yapmak isted ginzi soyieyin 2) Two firms, X and Y, are planning to market their new products. Each firm can develop TV, Laptop. Market research indicates that the resulting profits to each firm for the alternative strategies are given by the following payoff matrix: FIRM Y TV LAPTOP PHONE FIRM X TV 30, 30 50, 35 20, 50 LAPTOP 40,70 20, 20 50,80 PHONE 50,20 80,50 10,10 A) Find the Nash equilibria for this game, assuming that both firms make their decisions at the same time. (explain the decision step by step)i B) If each firm is risk averse and uses a maximin strategy, what will be the resulting equilibrium? (explain the decision step by step);
Problem Consider the following finitely repeated date game. Write down a subgame perfect equilibrium. You can do this using informal descriptions of the strategies. Iya Froyo Iva Is Frou Froyo 0,0 6,1 1,5 0,0
Two rival companies competing in the same market need to decide their plans for future expansion of their stores. The Table below shows the possible outcomes of their mutually interdependent actions (payoffs are profits in £m) Giga Company Titanic Conglomerate No Change Refurbishment of existing stores Large Expansion No Change 30, 40 25, 35 15, 24 Refurbishment of existing stores 35, 30 28, 32 18, 33 Large Expansion 12, 22 18, 20 20, 25 The Nash equilibrium: (A) does not exist. (B) occurs when both firms choose Refurbishment of existing stores. (C) occurs when both firms choose Large Expansion. (D) occurs when both firms choose No Change.
age Which of the following statements is the best description of a Nash equilibrium? Select one: O a. An equilibrium outcome achieved by cooperation between players in the game b. An outcome that is achieved when players in the game have jointly maximized profits and divided those profits according to market share of each player O c. An outcome where each player's strategy depends on the behaviour of its opponents d. An outcome where each player's best strategy is to maintain its present behaviour given the present behaviour of the other players Next page
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Please no written by hand solution A local KFC franchisee is evaluating the number of fried chickens to produce each day. The following table shows the 4 alternatives, the states of nature and their payoffs Daily Supply 40 50 60 70 Daily Demand 40 $80 $0 -$80 -$160 50 $80 $100 $20 -$60 60 $80 $100 $120 $40 70 $80 $100 $120 $140 What would your decision be if the following rules are applied? (show your calculation) Maximax Maximin La Place Minimax-regret
Game theory - please help. Thanks!
5. The following problem was first considered by John von Neumann and is a fundamentalresult game theory.A and B play the following game:A writes down either number 1 or number 2, and B must guess which one.If the number that A has written down is i and B has guessed correctly, B receives i units from A.If B makes a wrong guess, B pays 4/5 of a unit to A.First we consider the expected gain of player B.Suppose B guesses 1 with probability p and 2 with probability 1 −p.Let X1 denote B’s gain (or loss) in a game where A has written down 1.Let X2 denote B’s gain (or loss) in a game where A has written down 2.(a) Find the pmf of X1 and X2(b) Find B’s expected gain for these two cases, E[X1] and E[X2].(c) What value of p maximizes the minimum possible value of B’s expected gain?Now consider the expected loss of player ASuppose that A writes down 1 with probability q and 2 with probability 1 −q.Let Y1 be A’s loss (or gain) if B chooses number 1.Let Y2 be A’s loss (or gain) if B…
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