Managerial Economics: A Problem Solving Approach
5th Edition
ISBN: 9781337106665
Author: Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 15, Problem 15.1IP
To determine
The diagram of the game that shows whether to vote or not to vote.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
To Vote or Not to Vote
Mr. and Mrs. Ward typically vote oppositely in elections and so their votes “cancel each other out.” They each gain two units of utility from a vote for their positions (and lose two units of utility from a vote against their positions). However, the bother of actually voting costs each one unit of utility. Diagram a game in which they choose whether to vote or not to vote.
Mrs. Ward
vote. don't vote
Mr. Ward Vote. -1, -1. 1, -2
don't vote. -2, 1. 0,0?
Mr. and Mrs. Ward typically vote oppositely in elections and so their votes “cancel each other out.” They each gain two units of utility from a vote for their positions (and lose two units of utility from a vote against their positions). However, the bother of actually voting costs each one unit of utility. Diagram a game in which they choose whether to vote or not to vote, and determine the Nash Equilibrium.
Mr. and Mrs. Ward typically vote oppositely in elections and so their votes “cancel each other out.” They each gain 4 units of utility from a vote for their positions (and lose 4 units of utility from a vote against their positions). However, the bother of actually voting costs each 2 units of utility. The following matrix summarizes the strategies for both Mr. Ward and Mrs. Ward.
Mrs. Ward
Vote
Don't Vote
Mr. Ward
Vote
Mr. Ward: -2, Mrs. Ward: -2
Mr. Ward: 2, Mrs. Ward: -4
Don't Vote
Mr. Ward: -4, Mrs. Ward: 2
Mr. Ward: 0, Mrs. Ward: 0
The Nash equilibrium for this game is for Mr. Ward to (vote/not vote) and for Mrs. Ward to (vote/not vote) . Under this outcome, Mr. Ward receives a payoff of ____ units of utility and Mrs. Ward receives a payoff of ____ units of utility.
Suppose Mr. and Mrs. Ward agreed not to vote in tomorrow's election.
True or False: This agreement would increase utility for each spouse, compared to the Nash…
Chapter 15 Solutions
Managerial Economics: A Problem Solving Approach
Knowledge Booster
Similar questions
- Mr. and Mrs. Ward typically vote oppositely in elections and so their votes "cancel each other out." They each gain 30 units of utility from a vote for their positions (and lose 30 units of utility from a vote against their positions). However, the bother of actually voting costs each 15 units of utility. The following matrix summarizes the strategies for both Mr. Ward and Mrs. Ward. Mr. Ward Vote Don't Vote Mrs. Ward Vote Mr. Ward-15, Mrs. Ward: -15 Mr. Ward: 30, Mrs. Ward: 15 The Nash equilibrium for this game is for Mr. Ward to payoff of False Don't Vote Mr. Ward: 15, Mrs. Ward: -30 Mr. Ward: 0, Mrs. Ward: 0 units of utility and Mrs. Ward receives a payoff of This agreement not to vote. Suppose Mr. and Mrs. Ward agreed not to vote in tomorrow's election. True or False: This agreement would decrease utility for each spouse, compared to the Nash equilibrium from the previous part of the question. O True and for Mrs. Ward to units of utility a Nash equilibrium, Under this outcome, Mr.…arrow_forwardMr. and Mrs. Ward typically vote oppositely in elections and so their votes “cancel each other out.” They each gain 6 units of utility from a vote for their positions (and lose 6 units of utility from a vote against their positions). However, the bother of actually voting costs each 3 units of utility. The following matrix summarizes the strategies for both Mr. Ward and Mrs. Ward. Mrs. Ward Vote Don't Vote Mr. Ward Vote Mr. Ward: -3, Mrs. Ward: -3 Mr. Ward: 3, Mrs. Ward: -6 Don't Vote Mr. Ward: -6, Mrs. Ward: 3 Mr. Ward: 0, Mrs. Ward: 0 The Nash equilibrium for this game is for Mr. Ward to and for Mrs. Ward to . Under this outcome, Mr. Ward receives a payoff of units of utility and Mrs. Ward receives a payoff of units of utility. Suppose Mr. and Mrs. Ward agreed not to vote in tomorrow's election. True or False: This agreement would decrease utility for each spouse, compared to the Nash equilibrium from the previous part of the question. True…arrow_forwardMel and Mine usually vote against each other’s party in the SPG elections resulting to negating or offsetting their votes. If they vote for their party of choice, each of them gains four units of utility (and lose four units of utility from a vote against their party of choice). However, it costs each of them two units of utility for the hassle of actually voting during the SPG elections. A. Diagram a game in which John and Jane choose whether to vote or not to vote. B. Suppose John and Jane is in agreement not to vote during the election. 1.) Would such an agreement improve utility? Why? 2.) Would such an agreement be an equilibrium? Why?arrow_forward
- Mr. Ward and Mrs. Ward typically vote oppositely in elections, so their votes “cancel each other out.” They each gain 10 units of utility from a vote for their positions (and lose 10 units of utility from a vote against their positions). However, the bother of actually voting costs each 5 units of utility. The following matrix summarizes the strategies for both Mr. Ward and Mrs. Ward. Using the given information, fill in the payoffs for each cell in the matrix. For example, in the top left cell, fill in the payoffs for Mr. Ward and Mrs. Ward if they both vote. (Hint: Be sure to enter a minus sign if the payoff is negative.) Mrs. Ward Vote Don't Vote Mr. Ward Vote Mr. Ward: , Mrs. Ward Mr. Ward: , Mrs. Ward Don't Vote Mr. Ward: , Mrs. Ward Mr. Ward: , Mrs. Wardarrow_forwardMr. and Mrs. Ward typically vote oppositely in elections and so their votes "cancel each other out." They each gain 24 units of utility from a vote for their positions (and lose 24 units of utility from a vote against their positions). However, the bother of actually voting costs each 12 units of utility. The following matrix summarizes the strategies for both Mr. Ward and Mrs. Ward. Mr. Ward Vote Vote Mrs. Ward Mr. Ward: -12, Mrs. Ward: -12 Don't Vote Mr. Ward: -24, Mrs. Ward: 12 The Nash equilibrium for this game is for Mr. Ward to payoff of Don't Vote Mr. Ward: 12, Mrs. Ward: -24 Mr. Ward: 0, Mrs. Ward: 0 units of utility and Mrs. Ward receives a payoff of and for Mrs. Ward to units of utility. Under this outcome, Mr. Ward receives aarrow_forwardJohn and Jane usually vote against each other’s party in the SSC elections resulting to negating or offsetting their votes. If they vote for their party of choice, each of them gains four units of utility (and lose four units of utility from a vote against their party of choice). However, it costs each of them two units of utility for the hassle of actually voting during the SSC elections. A. Diagram a game in which John and Jane choose whether to vote or not to vote. B. Suppose John and Jane is in agreement not to vote during the election. 1.) Would such an agreement improve utility? Justify your answer. 2.) Would such an agreement be an equilibrium? Justify your answer.arrow_forward
- John and Jane usually vote against each other’s party in the SSC elections resulting to negating or offsetting their votes. If they vote for their party of choice, each of them gains four units of utility (and lose four units of utility from a vote against their party of choice). However, it costs each of them two units of utility for the hassle of actually voting during the SSC elections. A. Diagram a game in which John and Jane choose whether to vote or not to vote.arrow_forwardConsider the following simplified bargaining game. Players 1 and 2 have preferences over two goods, x and y. Player 1 is endowed with one unit of good x and none of good y, while Player 2 is endowed with one unit of y and none of good x. Player i has utility function: min{xi, yi} where xi is i's consumption of x and yi his consumption of y. The "bargaining" works as follows. Each player simultaneously hands any (nonnegative) quantity of the good he possesses (up to his entire endowment) to the other player. (a) Write this as a game in normal form. (b) Find all pure strategy equilibria of this game. (c) Does this game have a dominant strategy equilibrium? If so, what is it? If not, why not? Please show all work. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forwardMr. and Mrs. Ward typically vote oppositely in elections and so their votes “cancel each other out.” They each gain two units of utility from a vote for their positions (and lose two units of utility from a vote against their positions). However, the bother of actually voting costs each one unit of utility. Diagram a game in which they choose whether to vote or not to vote.arrow_forward
- Dislike will be givenarrow_forwardSuppose Carlos and Deborah are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Carlos chooses Right and Deborah chooses Right, Carlos will receive a payoff of 6 and Deborah will receive a payoff of 5. Deborah Left Right Carlos Left 8, 4 4, 5 Right 5, 4 6, 5 The only dominant strategy in this game is for to choose . The outcome reflecting the unique Nash equilibrium in this game is as follows: Carlos chooses and Deborah chooses .arrow_forwardSuppose Andrew and Beth are playing a game in which both must simultaneously choose the action Left or Right. The payoff matrix that follows shows the payoff each person will earn as a function of both of their choices. For example, the lower-right cell shows that if Andrew chooses Right and Beth chooses Right, Andrew will receive a payoff of 5 and Beth will receive a payoff of 5. Beth Left Right 6, 6 Right 4, 3 Left 6, 3 Andrew 5, 5 The only dominant strategy in this game is for to choose The outcome reflecting the unique Nash equilibrium in this game is as follows: Andrew chooses and Beth choosesarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning