The common elements of the economic games.

Question

Want to see more full solutions like this?

Answer 1

Question

Definition Definition Economic decision-making framework that analyzes how different players optimize their outcomes with given pay-offs corresponding to their available strategies. The assumptions of game theory are: The number of players or competitors are finite/limited; All participants are rational The rules of the game are known to every player; and Each participant has a finite set of actions. A common way in which game theory is presented as an ( m x n ) matrix in which m represents the strategies of row player and n represents the strategies of column player. There are several limitations of game theory: Many businesses have a large number of competitors, and selecting an optimal strategy in these circumstances is difficult; Real-life business operating environments are full of uncertainty and difficult to model as a game theory; and The assumption of rationality and utility maximization isn't always an accurate portrayal of human nature.

Chapter 12, Problem 1RQ

To determine

The common elements of the economic games.

Expert Solution & Answer

Explanation of Solution

When there are many players in the market, each one will be different from one another. The payoffs as well as the costs of production between different producers will be different. Thus, the strategies played in the economy by each firm would be different. This leads to the economic games between the firms where each firm would try to maximize their sales and profits due to the strategy of the competitors. Each economic game will have three common elements; they are as follows:

a. There will be different players in the economy. The presence of the different players or the firms in the economy creates the economic game. Without the competitors, there will be no game because there will be a unique strategy and no competition to the strategy.

b. There will be different strategies in the market for each player. This difference in the strategy occurs because of the fact that each one is not fully aware of the competitor's strategy.

c. There will be different payoffs for each firm. The difference in the economic strategies of the different players leads to the difference in the outcomes for each, which leads to different outcomes for different players in the market.

Economics Concept Introduction

Game theory: Game theory is the study of how people make decisions in situations in which attaining their goals depends on their interactions with others.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Mark's Pizza Enter George's Pizza Stay Out Advertise $50, -$2 $175, $0 Do Not Advertise $150, $15 $100, $0 In their quest to maximize combined total profits, Mark and George's Pizzas find themselves at a critical juncture. As they carefully evaluate the potential outcomes and weigh their strategic options, the future of Moncton's pizza industry hangs in the balance. Let's imagine both players are analyzing the payoff matrix seeking the optimal combination of actions that will yield the highest collective profit. What actions maximize their combined total profits? a. Mark's Pizza to "Advertise" and George's Pizza to "Stay Out". b. Mark's Pizza to "Do Not Advertise" and George's Pizza to "Stay Out" C. Mark's Pizza to Do Not Advertise" and George's Pizza to "Enter" d. Mark's Pizza to "Advertise" and George's Pizza to "Enter"

With your team I would like you to complete the following questions after please post your replies and we will discuss in class Choose a financial instrument or market (such as stocks, bonds, insurance, cash, gold, bitcoin). Explain how investments work for the individual investor mainly yourself. With the current market upheaval and uncertainty what would you and your team consider the best options for investment. Consider the idea of short term investing vs long term investing, laddering, safe haven, liquidity, and risk) Consider Roth IRA vs traditional IRA, ETF's, CD's, Mutual Funds. Always consider taxes and inflation your return should always be greater then inflation and taxes.

Short Description Fiscal Policy Graph Details Shown is a Fiscal Policy diagram with the variable Real GDP (billions of dollars) on the x-axis and the variable Price Level on the y-axis. The x-axis is scaled from 0 to 800 billion dollars with an increment of 40 billion dollars, and the y-axis is scaled from 30 to 150 units with an increment of 5 units. Object Details On the graph we have:Four Line Objects:An upward sloping Aggregate Supply, AS line with two endpoints:Point 1 at (160, 70)Point 2 at (720, 140)A downward sloping Aggregate Demand, AD1 line with two endpoints:Point 1 at (80, 110)Point 2 at (640, 40)A vertical Long-run Aggregate Supply, LRAS with two endpoints:Point 1 at (400, 145)Point 2 at (400, 30)A downward sloping Aggregate Demand, AD line with two endpoints:Point 1 at (720, 60)Point 2 at (160, 130)Two Reference Points:Lines AS, AD, and LRAS intersect at (400, 100)Lines AS and AD1 intersect at (280, 85) a. How much does aggregate demand need to change to restore the…

Answer 2

Question

Definition Definition Economic decision-making framework that analyzes how different players optimize their outcomes with given pay-offs corresponding to their available strategies. The assumptions of game theory are: The number of players or competitors are finite/limited; All participants are rational The rules of the game are known to every player; and Each participant has a finite set of actions. A common way in which game theory is presented as an ( m x n ) matrix in which m represents the strategies of row player and n represents the strategies of column player. There are several limitations of game theory: Many businesses have a large number of competitors, and selecting an optimal strategy in these circumstances is difficult; Real-life business operating environments are full of uncertainty and difficult to model as a game theory; and The assumption of rationality and utility maximization isn't always an accurate portrayal of human nature.

Chapter 12, Problem 1RQ

To determine

The common elements of the economic games.

Expert Solution & Answer

Explanation of Solution

When there are many players in the market, each one will be different from one another. The payoffs as well as the costs of production between different producers will be different. Thus, the strategies played in the economy by each firm would be different. This leads to the economic games between the firms where each firm would try to maximize their sales and profits due to the strategy of the competitors. Each economic game will have three common elements; they are as follows:

a. There will be different players in the economy. The presence of the different players or the firms in the economy creates the economic game. Without the competitors, there will be no game because there will be a unique strategy and no competition to the strategy.

b. There will be different strategies in the market for each player. This difference in the strategy occurs because of the fact that each one is not fully aware of the competitor's strategy.

c. There will be different payoffs for each firm. The difference in the economic strategies of the different players leads to the difference in the outcomes for each, which leads to different outcomes for different players in the market.

Economics Concept Introduction

Game theory: Game theory is the study of how people make decisions in situations in which attaining their goals depends on their interactions with others.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Definition Definition Economic decision-making framework that analyzes how different players optimize their outcomes with given pay-offs corresponding to their available strategies. The assumptions of game theory are: The number of players or competitors are finite/limited; All participants are rational The rules of the game are known to every player; and Each participant has a finite set of actions. A common way in which game theory is presented as an ( m x n ) matrix in which m represents the strategies of row player and n represents the strategies of column player. There are several limitations of game theory: Many businesses have a large number of competitors, and selecting an optimal strategy in these circumstances is difficult; Real-life business operating environments are full of uncertainty and difficult to model as a game theory; and The assumption of rationality and utility maximization isn't always an accurate portrayal of human nature.

Chapter 12, Problem 1RQ

To determine

The common elements of the economic games.

Expert Solution & Answer

Explanation of Solution

When there are many players in the market, each one will be different from one another. The payoffs as well as the costs of production between different producers will be different. Thus, the strategies played in the economy by each firm would be different. This leads to the economic games between the firms where each firm would try to maximize their sales and profits due to the strategy of the competitors. Each economic game will have three common elements; they are as follows:

a. There will be different players in the economy. The presence of the different players or the firms in the economy creates the economic game. Without the competitors, there will be no game because there will be a unique strategy and no competition to the strategy.

b. There will be different strategies in the market for each player. This difference in the strategy occurs because of the fact that each one is not fully aware of the competitor's strategy.

c. There will be different payoffs for each firm. The difference in the economic strategies of the different players leads to the difference in the outcomes for each, which leads to different outcomes for different players in the market.

Economics Concept Introduction

Game theory: Game theory is the study of how people make decisions in situations in which attaining their goals depends on their interactions with others.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Definition Definition Economic decision-making framework that analyzes how different players optimize their outcomes with given pay-offs corresponding to their available strategies. The assumptions of game theory are: The number of players or competitors are finite/limited; All participants are rational The rules of the game are known to every player; and Each participant has a finite set of actions. A common way in which game theory is presented as an ( m x n ) matrix in which m represents the strategies of row player and n represents the strategies of column player. There are several limitations of game theory: Many businesses have a large number of competitors, and selecting an optimal strategy in these circumstances is difficult; Real-life business operating environments are full of uncertainty and difficult to model as a game theory; and The assumption of rationality and utility maximization isn't always an accurate portrayal of human nature.

Chapter 12, Problem 1RQ

To determine

The common elements of the economic games.

Expert Solution & Answer

Explanation of Solution

When there are many players in the market, each one will be different from one another. The payoffs as well as the costs of production between different producers will be different. Thus, the strategies played in the economy by each firm would be different. This leads to the economic games between the firms where each firm would try to maximize their sales and profits due to the strategy of the competitors. Each economic game will have three common elements; they are as follows:

a. There will be different players in the economy. The presence of the different players or the firms in the economy creates the economic game. Without the competitors, there will be no game because there will be a unique strategy and no competition to the strategy.

b. There will be different strategies in the market for each player. This difference in the strategy occurs because of the fact that each one is not fully aware of the competitor's strategy.

c. There will be different payoffs for each firm. The difference in the economic strategies of the different players leads to the difference in the outcomes for each, which leads to different outcomes for different players in the market.

Economics Concept Introduction

Game theory: Game theory is the study of how people make decisions in situations in which attaining their goals depends on their interactions with others.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 12, Problem 1RQ

To determine

The common elements of the economic games.

Expert Solution & Answer

Explanation of Solution

When there are many players in the market, each one will be different from one another. The payoffs as well as the costs of production between different producers will be different. Thus, the strategies played in the economy by each firm would be different. This leads to the economic games between the firms where each firm would try to maximize their sales and profits due to the strategy of the competitors. Each economic game will have three common elements; they are as follows:

a. There will be different players in the economy. The presence of the different players or the firms in the economy creates the economic game. Without the competitors, there will be no game because there will be a unique strategy and no competition to the strategy.

b. There will be different strategies in the market for each player. This difference in the strategy occurs because of the fact that each one is not fully aware of the competitor's strategy.

c. There will be different payoffs for each firm. The difference in the economic strategies of the different players leads to the difference in the outcomes for each, which leads to different outcomes for different players in the market.

Economics Concept Introduction

Game theory: Game theory is the study of how people make decisions in situations in which attaining their goals depends on their interactions with others.

Answer 6

Chapter 12, Problem 1RQ

To determine

The common elements of the economic games.

Expert Solution & Answer

Explanation of Solution

When there are many players in the market, each one will be different from one another. The payoffs as well as the costs of production between different producers will be different. Thus, the strategies played in the economy by each firm would be different. This leads to the economic games between the firms where each firm would try to maximize their sales and profits due to the strategy of the competitors. Each economic game will have three common elements; they are as follows:

a. There will be different players in the economy. The presence of the different players or the firms in the economy creates the economic game. Without the competitors, there will be no game because there will be a unique strategy and no competition to the strategy.

b. There will be different strategies in the market for each player. This difference in the strategy occurs because of the fact that each one is not fully aware of the competitor's strategy.

c. There will be different payoffs for each firm. The difference in the economic strategies of the different players leads to the difference in the outcomes for each, which leads to different outcomes for different players in the market.

Economics Concept Introduction

Game theory: Game theory is the study of how people make decisions in situations in which attaining their goals depends on their interactions with others.

Answer 7

Chapter 12, Problem 1RQ

To determine

The common elements of the economic games.

Answer 8

Expert Solution & Answer

Explanation of Solution

When there are many players in the market, each one will be different from one another. The payoffs as well as the costs of production between different producers will be different. Thus, the strategies played in the economy by each firm would be different. This leads to the economic games between the firms where each firm would try to maximize their sales and profits due to the strategy of the competitors. Each economic game will have three common elements; they are as follows:

a. There will be different players in the economy. The presence of the different players or the firms in the economy creates the economic game. Without the competitors, there will be no game because there will be a unique strategy and no competition to the strategy.

b. There will be different strategies in the market for each player. This difference in the strategy occurs because of the fact that each one is not fully aware of the competitor's strategy.

c. There will be different payoffs for each firm. The difference in the economic strategies of the different players leads to the difference in the outcomes for each, which leads to different outcomes for different players in the market.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Economics Concept Introduction

Game theory: Game theory is the study of how people make decisions in situations in which attaining their goals depends on their interactions with others.

Answer 12

Ch. 12 - Prob. 1RQ Ch. 12 - Prob. 2RQ Ch. 12 - Prob. 3RQ Ch. 12 - Prob. 4RQ Ch. 12 - Prob. 5RQ Ch. 12 - Prob. 6RQ Ch. 12 - Prob. 7RQ Ch. 12 - Prob. 8RQ Ch. 12 - Prob. 9RQ Ch. 12 - Prob. 10RQ

The common elements of the economic games.

The common elements of the economic games.

Explanation of Solution

Want to see more full solutions like this?

Chapter 12 Solutions