Two oligarchs, A and B had an argument about the money they "earned", K billion US dollars. In order to solve the problem, they went to a court. Instead of using a court in city L (which was a common practice), they opted for a court in city M. A justice system of city M is famous for its transparency: a judge collects "contributions" from both parties. The party which made the largest "contribution" wins the case, another looses, "contributions" are not returned. In case of a tie, the judge flips a coin. 1. Formulate this situation as a strategic game 2. Show that there is no pure strategy equilibrium 3. Show that the lower bound of the support of contributions is 0 4. Derive mixed strategy equilibrium of the game

Two oligarchs, A and B had an argument about the money they "earned", K billion US dollars. In order to solve the problem, they went to a court. Instead of using a court in city L (which was a common practice), they opted for a court in city M. A justice system of city M is famous for its transparency: a judge collects "contributions" from both parties. The party which made the largest "contribution" wins the case, another looses, "contributions" are not returned. In case of a tie, the judge flips a coin. 1. Formulate this situation as a strategic game 2. Show that there is no pure strategy equilibrium 3. Show that the lower bound of the support of contributions is 0 4. Derive mixed strategy equilibrium of the game

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

a) For each, find the expressions for marginal utilities and the marginal rate of substitution, and determine whether monotonicity and convexity are met.
Solve by hand (no excel)
7
pls help asap on both
Suppose we are again given 20 tulip bulbs that are very similar in appearance. Information on this new set of tulips is summarized below: Early (E) Late (L) Totals Red (R) Yellow (Y) Totals 5 5 10 5 5 10 10 10 20 What is P(Y)? (Enter the probability with two decimal places)
2. Find the extremum of x2 + x3 subject to x₁ + 4x2 = 2.
2x+3z = 5 and 3x+2z = 5. The value of both x and z is A/
Consider a class with 80 enrolled students. None of the students were ill at the beginning of the school year. On August 30th, 10 students reported having a common cold. All continued to be ill on September 1st, but all 10 recovered within 3 days. On September 15th, 5 more students had a cold. All of these students continued to be ill on September 16th, but all recovered 5 days later. In this example, assume that a person cannot have a cold more than once.calculate the cumulative incidence of the common cold in the class during the month of september
Can you please answer (Question.4) below?
Exercise Annika spends all of her income on golf and pancakes. Greens fees at a local golf course are $10 per round. Pancake mix is $2 per box. When Annika's income is $100 per week, she buys 5 boxes of pancake mix and 9 rounds of golf. When Annika's income rises to $120 per week, she buys 10 boxes of pancake mix and 10 rounds of golf. Based on these figures, determine whether each of the following statements is true or false, and briefly explain your reasoning 1. Golf is a normal good, and pancake mix is an inferior good 2. Golf is a luxury good 3. Pancakes are a luxury good
Express covariance between two variables for a given third variable in terms of conditional covariances.
3. Use the following joint distribution to compute E(X), E(Y), o, o, oxy, and corr(X, Y). Y=0 X=0 X=1 Total 0.15 0.07 0.22 0.78 Y=1 0.15 0.63 Total 0.30 0.70 1.00