MICROECONOMICS-ACCESS CARD <CUSTOM>
11th Edition
ISBN: 9781266285097
Author: Colander
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Chapter 20, Problem 2QAP
To determine
Check whether
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Economics
Consider the ultimatum and dictator games.
a) Briefly explain the general experimental findings
about how individuals play these games. How do
they compare with the game theoretic
predictions?
b) How do social preferences explain behavior in
these experiments?
c) Real world experiences have an impact on
experimental behavior. Explain how real world
experiences could affect behavior in each of
theses experiments.
d) Suppose that you would like to increase the
amount that is sent in these experiments. Can you
think of a way to to this?
e) Suppose that individuals play first a dictator
game and then an ultimatum game with the roles
reversed, i.e. the sender in the dictator game is the
receiver in the ultimatum game. Given what you
know about individuals' behavior, how do
think that players will play? Explain.
you
Cooperative Games - Game Theory
You have just played rock, paper, scissors with your friend. You chose scissors and he chose paper, so you won. Is this a Nash equilibrium? Explain why or why not.
Chapter 20 Solutions
MICROECONOMICS-ACCESS CARD <CUSTOM>
Ch. 20.1 - Prob. 1QCh. 20.1 - Prob. 2QCh. 20.1 - Prob. 3QCh. 20.1 - Prob. 4QCh. 20.1 - Prob. 5QCh. 20.1 - Prob. 6QCh. 20.1 - Prob. 7QCh. 20.1 - Prob. 8QCh. 20.1 - Prob. 9QCh. 20.1 - Prob. 10Q
Ch. 20.A - Netflix and Hulu each expects profit to rise by...Ch. 20.A - Prob. 2QECh. 20 - Prob. 1QECh. 20 - Prob. 2QECh. 20 - Prob. 3QECh. 20 - Prob. 4QECh. 20 - Prob. 5QECh. 20 - Prob. 6QECh. 20 - Prob. 7QECh. 20 - Prob. 8QECh. 20 - Prob. 9QECh. 20 - Prob. 10QECh. 20 - Prob. 11QECh. 20 - Prob. 12QECh. 20 - Prob. 13QECh. 20 - Prob. 14QECh. 20 - Prob. 15QECh. 20 - Prob. 16QECh. 20 - Prob. 1QAPCh. 20 - Prob. 2QAPCh. 20 - Prob. 3QAPCh. 20 - Prob. 4QAPCh. 20 - Prob. 5QAPCh. 20 - Prob. 6QAPCh. 20 - Prob. 1IPCh. 20 - Prob. 2IPCh. 20 - Prob. 3IPCh. 20 - Prob. 4IPCh. 20 - Prob. 5IPCh. 20 - Prob. 6IPCh. 20 - Prob. 7IP
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- Which of the following problems makes it difficult to interpret human experiments using cooperation games based on economic game theory? If you compare humans from different cultures, you get different results which defeats the purpose. These games do not test human behavior under conditions that are ecologically realistic. Economic game theory assumes that humans are selfish, but actually we are cooperative. Humans choose to cooperate because they are related.arrow_forwardNash equilibrium refers to the optimal outcome of a game where there is no incentive for the players to deviate from their initial strategy. An individual (or player) can receive no incremental benefit from changing actions, assuming other players remain constant in their strategies. Given this premise, can there be a no Nash equilibrium?arrow_forwardGame Theory and Strategic Choices - End of Chapter Problem Your instructor challenges you to solve this classic economics thought experiment called the stag hunt: Suppose you and a hunting partner are hunting for food to feed your families in a post-apocalyptic world with no stores, farms, or trade. You lay a trap for a deer that will provide a large number of calories for your two families to continue to survive. While waiting, you both spot a hare running through the trap. If you chase after the hare, you'll catch it but you will scare any wildlife in the area and you won't catch the deer you were waiting for. The hare only provides a small amount of calories for your own family and none for your partner's family. Use the payoff matrix to answer the question. You hunt the deer You hunt the hare Your friend hunts the deer Your payoff is 5 Your friend's payoff is 5 Your payoff is 2 Your friend's payoff is A Your friend hunts the hare Your payoff is A Your friend's payoff is 2 Your…arrow_forward
- Suppose China and the US are deciding whether to join an international agreement to mitigate climate change. The matrix below contains payoffs that represent each country’s net benefit from their decisions. Use this information to answer Question 24. CHINA USA Join Agreement Do Not Join Agreement Join Agreement (100,100) (0,125) Do Not Join Agreement (125,0) (25,25) [24] What does each country decide to do in a Nash equilibrium? AND What is the efficient outcome? Nash: Efficient:arrow_forwardWhich of the following statements is true? An outcome cannot be a Nash equilibrium if it is Pareto dominated by every other outcome. If all outcomes of a game are rationalizable, then there is at least one Nash equilibrium in pure strategies. Games with a mixed strategy Nash equilibrium cannot have a pure strategy Nash equilibrium. Adding more players to a game will increase the number of Nash equilibria. None of the above. No Answerarrow_forwardEconomic agents for example consumers or firms often do things Economic agents (for example, consumers or firms) often do things that at first glance seem to be inconsistent with their self-interest. People tip at restaurants and when they are on vacation even if they have no intention to return to the same place. Firms, sometimes, install costly pollution abatement equipment voluntarily. How can these deviations from Nash predictions be explained? Economic agents for example consumers or firms often do thingsarrow_forward
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