Player 1 chooses between Up and Down. Player 2 observes this, then chooses between Up and Down herself. If both players choose same action, they both get a payoff of 1. If they choose different actions, the player with Up gets 1 and the player with Down gets -1. H many (pure strategy) Nash equilibria are there in this game? 1 O 2 4
Player 1 chooses between Up and Down. Player 2 observes this, then chooses between Up and Down herself. If both players choose same action, they both get a payoff of 1. If they choose different actions, the player with Up gets 1 and the player with Down gets -1. H many (pure strategy) Nash equilibria are there in this game? 1 O 2 4
Chapter1: Making Economics Decisions
Section: Chapter Questions
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Transcribed Image Text:QUESTION 8
Player 1 chooses between Up and Down. Player 2 observes this, then chooses between Up and Down herself. If both players choose the
same action, they both get a payoff of 1. If they choose different actions, the player with Up gets 1 and the player with Down gets -1. Hov
many (pure strategy) Nash equilibria are there in this game?
1
3
4
QUESTION 9
In the Bertrand model, suppose that each firm has a marginal cost of £10 and that firm 1 sets a price of £9.99, which of the following a
best-response for firm 2? Click all the correct answers.
£10.01
£9.98
£10.00
£11.01
O £9.99
QUESTION 10
In a Lindahl equilibrium, which of the following is true:
O The quantity of public goods provided satisfies the Samuelson rule.
The quantity of public goods consumed is more than the quantity of private goods.
individuals pay the same tax shares.
Individuals who have a higher demand for public goods consume more public goods.
O O O O O
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