Critical Thinking Seven Salvatore’s Chapter 14: a) Discussion Questions: 12 and 15. b) Problems: spreadsheet problems 1 and 2. Discussion Question 12: What is the rationale behind the minimax regret rule? What are some of the less formal and precise methods of dealing with uncertainty? When are these useful? The minimax regret rule is a strategy usually used by risk neutral management. The goal of this strategy is to minimize the maximum possible regret that would be incurred as a result of making the
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“To catch a cartel” Author: Elisabeth Sexton. Date: 21 March 2008 Source: The Sydney Morning Herald The competition watchdog ’s tactic of offering corporate whistleblowers legal immunity to expose cartels is under threat as the government moves to make price-fixing a criminal offence. Elisabeth Sexton reports. Graeme Samuel has a clear recollection of the events of November 22‚ 2004. In the morning‚ the chairman of the Australian Competition and Consumer Commission received the phone
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Kelley. Outcome: rewards minus costs. Thibaut and Kelley suggest that people try to predict the outcome of an interaction before it takes place. The economic approach to determining behavior dates from John Stuart Mill’s principle of utility. The minimax principle of human behavior claims that
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Econ 302 Exam 2 McLeod Name (please print): __________________________________________________________ Penn State ID #: __________________________________________________________ Please write all answers in the spaces provided. Please show your work in order to receive any partial credit on this exam. 1. (16 points) Suppose a firm has a production function given by Q = L1/2K1/2. Therefore
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MATH 4321 Spring 2013 Assignment Solution 0-Sum Games 2 1. Reduce by dominance to 2x2 games and solve. 5 4 4 3 (a) 0 1 1 2 1 0 2 1 4 3 1 2 10 0 7 1 (b) 2 6 4 7 6 3 3 5 Solution: (a). Column 2 dominates column 1; then row 3 dominates row 4; then column 4 dominates column 3; then row 1 dominates row 2. The resulting submatrix consists of row 1 and 3 vs. columns 2 and 4. Solving this 2 by 2 game and moving back to the original game we find that value is
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Decisions a- Decisions whether b- Decisions which c- Contingent decisions 3) The Decision Environment Approaches to Decision Making a- Authoritarian b- Group 4) 5) Some Decision Making Strategies a- Optimizing b- Satisficing c- Maximax d- Maximin II- Decision Making Procedure and techniques 1) Basic guidelines to decision making and problem solving 2) Decision making techniques a- Pareto Analysis b- Paired Comparison Analysis c- Grid Analysis d- PMI e- Force
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those in his office‚ he was specifically referring to federal income tax. His argument is that the least affluent in society should be given more by distributing from those making more than 1 million dollars. This draws from the Rawlsian tradition of maximin criterion‚ or the claim that the government should aim to maximize the well-being of the worst-off person in society. However‚ this suggestion ignores the incentives made by those in response to taxation. Higher tax rates would cause people to spend
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Rawls Theory of Justice A contemporary philosopher‚ John Rawls (1921-2002)‚ is noted for his contributions to political and moral philosophy. In particular‚ Rawls ’ discussion about justice introduced five important concepts into discourse‚ including: the two principles of justice‚ the “original position” and “veil of ignorance”. Rawls most famous work is‚ A Theory of Justice (1971) gives an introduction to this body of thought and he emphasises the importance justice has on governing and organising
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20: Income Inequality and Poverty 1) Income Inequality and Poverty A person’s earnings depend on the supply and demand for that person’s labor‚ which in turn depend on natural ability‚ human capital‚ compensating differentials‚ discrimination‚ and so on. 2) THE MEASUREMENT OF INEQUALITY How much inequality is there in our society? How many people live in poverty? What problems arise in measuring the amount of inequality? How often do people move among income classes? 3) Table 1 The Distribution
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Critical Time Line The critical time line is a sequence of moves i.e. actions and reactions performed by the company and its rivals within the time continuum. It helps us in understanding the expected pattern of sequence in t+1. While constructing the critical time for the action-reaction sequence between Sony and Microsoft‚ the time period considered is between 2000 and 2017. The events considered are the generally the product announcements and their release‚ the initial pricing and the price adjustment
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