Answer the B par Question 4A village has two villagers with an income of £200 each. The village decides to take contributionsto build a new commons. The commons can be of any size, and generates By utility for each of thevillagers if the total contribution is y, where B is a strictly positive real number. Contributions are alsoreal numbers, bounded between 0 and 200. If villager 1 contributes r1 and villager 2 contributes r2,then villager i's utility is 200 – Xi + B (x1 + x2).(a)What are the pure strategy Nash equilibria for each value of 3?The mayor, an LSE trained economist who only values the total utility of the villagers, decides(b)that she will only build the commons if total contributions exceed 80. That is, if r1 + r2 < 80,then citizen i gets utility of 200 – xi, and if xi +r2 > 80, she gets 200 – Xi +B (x1 + x2). Whatis the logic behind the mayor's change? For what values of B would you expect an improvementfrom the change? Explain and justify your answers with game theoretic reasoning.

Everything from pricing tactics and profitability to community engagement and conflict resolution is…

Question 4 A village has two villagers with an income of £200 each. The village decides to take contributions to build a new commons. The commons can be of any size, and generates By utility for each of the villagers if the total contribution is y, where is a strictly positive real number. Contributions are also real numbers, bounded between 0 and 200. If villager 1 contributes ₁ and villager 2 contributes x2, then villager i's utility is 200 - x + B(x₁+x₂). (a) What are the pure strategy Nash equilibria for each value of 3? (b) The mayor, an LSE trained economist who only values the total utility of the villagers, decides that she will only build the commons if total contributions exceed 80. That is, if x₁ + x2 < 80, then citizen i gets utility of 200-x, and if x1 + x2 ≥ 80, she gets 200-xi+B (x1+x2). What is the logic behind the mayor's change? For what values of 3 would you expect an improvement from the change? Explain and justify your answers with game theoretic reasoning.

Question 4 A village has two villagers with an income of £200 each. The village decides to take contributions to build a new commons. The commons can be of any size, and generates By utility for each of the villagers if the total contribution is y, where is a strictly positive real number. Contributions are also real numbers, bounded between 0 and 200. If villager 1 contributes ₁ and villager 2 contributes x2, then villager i's utility is 200 - x + B(x₁+x₂). (a) What are the pure strategy Nash equilibria for each value of 3? (b) The mayor, an LSE trained economist who only values the total utility of the villagers, decides that she will only build the commons if total contributions exceed 80. That is, if x₁ + x2 < 80, then citizen i gets utility of 200-x, and if x1 + x2 ≥ 80, she gets 200-xi+B (x1+x2). What is the logic behind the mayor's change? For what values of 3 would you expect an improvement from the change? Explain and justify your answers with game theoretic reasoning.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Identify a minimum of 5 features/tools that are offered.
How do you figure out opertunity cost?
Dont copy the question, answer and explanation only.Thank you .I hope you will follow my instruction so that I will rate you as helpful.Thank you
Why do you need to learn engineering economy?
4-5 Processing Insurance Claims Your insurance firm processes claims through its newer, larger, high-tech facility and its older, smaller, low-tech facility. Each month, the high-tech facility handles 10,000 claims, incurs $100,000 in fixed costs and $100,000 in variable costs. Each month, the low-tech facility handles 2,000 claims, incurs $16,000 in fixed costs and $24,000 in variable costs. If you anticipate a decrease in the number of claims, where will you lay off workers?
Define the term Routine Annual Maintenance Costs?
PLS HELP ASAP ON BOTH
Please find the value of a APS when APC is 0.44
What is the consumer's BAB ? Please make sure that your graph is legible
3. What methedological conAiden ation in Ecan omics will be useful for decision- making or policy making? A. Welfare E comics B. Narmative Ecanomics C. Positive Ecanomi co D. Nome of the above
which quote best represents a person performing a cost-benfit analysis?
what is Operational definition Repeat Purchase for food customer?