Problem #4 (page 363) Consider a game with two players who cannot communicate‚ and in which each player is asked a question. The players can answer the question honestly or lie. If both answer honestly each receives $100. If one player answers honestly and the other lies‚ the liar receives $500 and the honest player gets nothing. If both lie‚ then each receives $50. a) Construct the payoff matrix Honest Player 1 Lie $100 $100 $500 $0 $500 $0 $50 $50 $100
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Practice Problem Sets Industrial Organization Oz Shy General Instructions for Students 1. The problem sets given in this handout are taken from old exams. 2. Exercises should NOT submitted (they will not be graded). However‚ 3. The best‚ and perhaps the only‚ way to ensure that you understand the material taught in class is to solve these exercises under “exam conditions” and only then check the proposed solution. 4. Solutions to all problems can be downloaded as a separate file. 5. Another
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(5pnts) Find the pure strategy Nash equilibria of the simultaneous game b. (5pnts) Now suppose the game is played sequentially. Find the subgame perfect equilibrium if player 1 goes first and if player 2 goes first. c. (5pnts) Discuss whether each of the players would want to go first or second. d. (5pnts) Write down a system of equations such that the solution to the system would give a completely mixed strategy equilibrium of this game (please clearly define all of your notation). Can this system of equations
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References: Burgess H & Burgess G M (1997) Encyclopedia of Conflict Resolution ‚ ABC-CLIO‚ Denver Deutsch M (2000) “Cooperation and Comnpetition” in The Handbook of Conflict Resolution: Theory and Practice‚ Jossey-Bass‚ San Francisco Deutsch M (1973) The Resolution of Conflict: Constructive and Destructive Processes‚ Yale University Press‚ Newhaven Lax D & Sebenius J K (1986) The Manager as Negotiator: Bargaining for Cooperation and Competetive
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Paragraphs) A. Main Point (Topic Sentence): Cigarettes smoking increases your risk of lung and mouth cancer. 1. Supporting detail: lungs lose capacity to expand properly 2. Supporting detail: toxins inside cancer mess with your mouth 3. Supporting detail: lung and mouth cancer can lead to death B. Main Point (Topic Sentence): Cigarette smoking can give you mouth ulcers. 1. Supporting detail: toxins inside the cigarette burn holes in your mouth 2. Supporting detail:
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The Game Theory by Malcolm Gladwell‚ gives amazing insight into the world of professional sport statistics. Gladwell argues that athletic dominance in a team sport can’t always be seen by the eye. Allen Iverson‚ for instance‚ was the 2001-2002 NBA’s Most Valuable Player. He was viewed as one of the best basketball players of his generation. However an algorithm devised by David Berry‚ Martin Schmidt‚ and Stacey Brook‚ shows the true value of a basketball player by grading their number of wins they
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A consumer society is a post-industrial term used to describe the fact that society is characterised more by what people consume and less by the jobs they do or goods they produce (Hetherington‚ 2009). As our relationship with consumerism has changed so too have the choices available of why‚ when‚ where and how we consume. The first part of this assignment will look at the characteristics of a consumer society‚ the choices available and identify the divisions created from unequal choices. The second
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This lecture by Stiglitz is about how and why Pareto or near-Pareto improvement is hard to achieve‚ through his experience in Council of Economic Advisors for the United States government. First‚ Stiglitz writes about Adam Smith`s invisible hand theory as an explications of conditions under which market equilibrium will be Pareto efficient‚ and discusses about the importance of government intervention by writing that in presence of imperfect information or incomplete market‚ there will always be
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Introductory Microeconomics 2008 Exam Solutions Section A 1. C |Hours of tutoring per week|Total Opportunity cost |Marginal Cost |Wage Payment (Marginal | | | | |Benefit) | |0 |0 | | | |1 |$20 |$20 |$50
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competitive responses. In contrast‚ a soft commitment is one that‚ no matter what its competitors do‚ the firm will behave less aggressively than if it had not made the commitment. Thus‚ in a Cournot game a soft commitment will cause the firm to produce relatively less output‚ while in a Bertrand game a soft commitment will induce the firm to charge a higher price than if it had not made the commitment. 2. How are commitments related to sunk costs? A commitment is a difficult-to-reverse action
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