Thoroughly explain the situation: identify the players‚ the rules‚ and all the outcomes. You may simplify the example if needed (for instance‚ if there are n players‚ you can simply it to just 2 players). Include the payoff matrix‚ and do your best to put in real values (estimates) as payoffs. Make clear why your application is a Prisoner’s Dilemma: what is the social optimal outcome‚ and what is the Nash Equilibrium. Suggest possibilities for (sustained) cooperation. What could be done so that the players’
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ACCRUAL SWAPS AND RANGE NOTES PATRICK S. HAGAN BLOOMBERG LP 499 PARK AVENUE NEW YORK‚ NY 10022 PHAGAN1@BLOOMBERG.NET 212-893-4231 Abstract. Here we present the standard methodology for pricing accrual swaps‚ range notes‚ and callable accrual swaps and range notes. Key words. range notes‚ time swaps‚ accrual notes 1. Introduction. 1.1. Notation. In our notation today is always t = 0‚ and (1.1a) D(T ) = today’s discount factor for maturity T. For any date t in the future‚ let Z(t; T ) be the
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pricing and output decisions of businessesExplain how market structures in the above case deviate determine the pricing and output decisions of businesses | - Market type as one of perfect competition‚ monopoly‚ monopolistic competition‚ oligopoly‚ duopoly.- Decisions of the company based on competitive advantage‚ strategies and in line with regulation of competition. | | | Illustrate the way in which market forces shape organisational responses using a range of examplesIllustrate the way in which
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Question no: 01:- Accounting profit and Economic profit. Economic Profit Implicit cost Accounting profit Explicit cost Total opportunity cost Revenue Revenue How an economist views a firm How an accountant views a firm Accounting profit equals sales revenue minus ( - ) all costs except the cost of equity capital‚ while Economic profit is sales revenue minus ( - ) all costs including the opportunity cost of equity capital. Thus economic profit may be lower than the accounting profit
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Poker: A Game Theoretical Analysis Mathematics HL Mahmoud Talaat Introduction I have been playing Texas Hold ‘em Poker since I was 14 years old‚ and since then‚ I had a pact with my friends that we would meet every Friday night and play some Poker. Poker is a group of card games that involve betting‚ strategy‚ and individual play. One of these card games is called Texas Hold ‘em. Texas Hold ‘em Poker consists of two “hole” cards dealt to each player and five “community” cards held face-up by
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School of Arts and Social Sciences Final Marks (MARKER(S) ONLY) /50 ECON A231F Introduction to Microeconomics (September 2014) Mid-term Test 2 Date: 1 December 2014 Time: 8:15pm – 9:30pm Monday 9:00 – 10:00 Tuesday Wednesday Thursday T01 (Keith) T02 (Keith) 10:00 - 11:00 T22 (Yuka) 11:00 - 12:00 12:00 - 13:00 T08 (Eddie) T21 (Keith) 13:00 - 14:00 T05 (Yuka) T11 (Keith) 14:00 – 15:00 T03 (Eddie) T04 (Yuka) T07 (Keith) T18 (Keith) 15:00 - 16:00 T06 (Eddie) T09 (Keith) 16:00 -
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P(low none) .8 and P(high some) .6. Recalling that the payoffs associated with no oil‚ some oil‚ and much oil are $700‚000‚ $500‚000‚ and $2‚000‚000‚ Respectively ‚ do the following: a Draw a decision tree for this decision problem. b Carry out a posterior analysis. Find the best alternative (drill or do not drill) for each possible result of the magnetic experiment(low or high) ‚ and find the associate expected payoffs. c Carry out a preposterior analysis. Determine the maximum amount
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QUANTITATIVE MODULE Decision-Making Tools Discussion Questions 1. The 6 steps of the decision process are: 1. Clearly define the problem and the factors that influence it. 2. Develop specific and measurable objectives. 3. Develop a model. 4. Evaluate each alternative solution. 5. Select the best alternative. 6. Implement the solution. 2. The purpose of this question is to make students use a personal experience to distinguish between good and bad decisions. A “good”
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different action as long as every other player remains the same. Nash Equilibria are self-enforcing; when players are at a Nash Equilibrium they have no desire to move because they will be worse off. Necessary Conditions The following game doesn’t have payoffs defined: L R T a‚b c‚d B e‚f g‚h In order for (T‚L) to be an equilibrium in dominant strategies (which is also a Nash Equilibrium)‚ the following must be true: a > e c > g b > d f > h In order for (T‚L) to be a Nash Equilibrium‚ only
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Introduction Between the definitions of perfect competition and pure monopoly lie oligopolies and monopolistic competition‚ oligopoly is where there are a few sellers with similar or identical products ‚ which are large enough relative to the total market that they can influence the market price. It is a form for market structure quite common. In many countries‚ the automobile‚ steel‚ petrochemical‚ electrical and computer devices all belong to category of oligopoly market structure. In recent
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