Seminar 4 - Industrial Economics Week 16: beginning November 14th 2011 Price Competition and Bertrand Model Discussion Questions 1. Suppose firm 1 and firm 2 each produce the same product and face a market demand curve described by: Q = 5000 - 200P Firm 1 has a unit cost of production c1 equal to 6 whereas firm 2 has a higher unit cost of production c2 equal to 10. a. What is the Bertrand-Nash equilibrium outcome? b. What are the profits for each firm? c. Is this outcome efficient
Premium Supply and demand Competition Economics
equilibrium in this game? Explain While driving makes communication difficult (i.e.‚ one driver cannot ask the other which way they will serve); intuition suggests that each driver will swerve away from the other. There are two pure Nash equilibria: either both swerve right or both swerve left. Which side the drivers swerve to is irrelevant so long as they both swerve the same direction. Both outcomes (both swerving right‚ both swerving left) are pareto efficient. Why this game is called a cooperative
Premium Economics Game theory Nash equilibrium
FINA0104 Management of Commercial Banks Prof. Keith K. P. Wong Fall 2013 • Course Objective: The focus of this course is on the economics of commercial banks. This course seeks to enhance your understanding of why commercial banks exist and what economic roles they play‚ the risks faced by banks in the lending process‚ off-balance sheet banking‚ deposit insurance‚ bank regulation‚ and risk management. 1 The economics of financial contracting in the banking industry---from deposit
Premium Game theory Nash equilibrium Risk aversion
Women are better politicians than men There is a mindset in the current society that men make better politicians than women. In fact‚ that statement is not true. Women make good politicians too‚ some are even better than men in many aspects. Women politicians make better politicians because they compromise better‚ are more trustworthy and cooperative‚ plus they are more strong-minded as compared to men. One of the best example is Christine Lagarde the first female Minister
Premium Game theory Woman
Management-art of getting things accomplished in org-s through others.Goals(OB):predicting behaviour‚explain events‚managing ob.Classical viewpoint-high specialization of labour‚‚intensive specialization‚ central decision-making.Scientific Management-taylor‚optimum of special\standard-tion.Burecracy-weber‚srict chain of command‚detailed rules‚high spec.‚central power‚selection\promotion based on competence.Hawthorne-how psychological affect productivity.HumanRelationsMovement(critique)-stric spec
Premium Game theory Management
York said this about the brain activities between adults and teens when playing a video game: “what the adolescents appear to be doing in this case‚ as opposed to acting impulsively and being pulled by that reward‚ they’re making sure and letting enough evidence accumulate‚ so that they get it right” (Hamilton) Teens were waiting to make a decision rather than being impulsive and answering the question in the game quickly‚ making sure to make the right decision. While this may be reason to change one’s
Premium Romeo and Juliet Cognition Decision making
Change Simulation Experience “It is not the strongest of the species that survive‚ nor the most intelligent‚ but the ones most responsive to change.” - Charles Darwin Charles Darwin’s groundbreaking theory of evolution was certainly not restricted to species in the wild. Adapting to change in any corporate environment is fundamental to the success of any organization and its employees. Achieving this success depends on a key ingredient – appropriate application of change management that
Premium Change management Stakeholder analysis Decision making
of social preferences‚ which as noted earlier‚ is a well-established phenomenon. It has nothing to do inherently with lying aversion‚ since it applies just as well when the allocations are chosen directly in the dictator game rather than through communication in the deception game. This highlights our analytical point: it is important to condition on preferences over allocations when interpreting lying behavior. Indeed‚ we will show that Gneezy’s data is consistent with an even stronger version of
Premium Lie Game theory
Ingredients in Cigarette Stearic Acid is a waxy white substance that is a fatty acid. It is found in nature in animal and vegetable fats‚ and is a component that is used to make candles‚ plastics‚ oil pastels‚ and cosmetics. Stearic acid is also used in lubricating mixtures‚ waterproofing materials‚ varnish driers‚ and as an emulsifying agent. It’s addictive‚ however it is non-toxic. A study which was done in Sweden shows that Stearic acid is a risk factor for breast cancer. Stearic acid is used
Premium Smoking Water Cigarette
day‚ are in constant flux and cannot be managed perfectly. • Depending on the nature and amount of decisions to be made as well as who is present on different occassions‚ managers are faced with occasions of choice. I will now discuss applicable theory to show why organisational decision-making is often erratic and unstructured in an attempt to support March’s propositions that the rational model does not best explain organisational decision-making. In rational decision-making a number of well-defined
Premium Decision making Game theory