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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a) If Alice chooses not buy‚ best response of Caterpillar is to choose bad. And if Caterpillar chooses bad‚ best response of Alice is to choose not buy. Therefore‚ pure strategy Nash equilibria is bottom right corner. Not buy from Alice and bad from Caterpillar. b) No‚ there isn’t a trigger strategy that induces buy/good for 10 periods. If this was infinitely repeated interaction‚ δ would equal to 1/3‚ computed from trigger condition Equation. Using the same tools‚ we derive following
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Important Things To Know * Markup = P-MCP= -1price elasticity of demand * Market demand = firm’s demand for a monopoly ONLY * TR=aQ-bQ2 and MR=a-2bQ * Monopoly output is ALWAYS LESS than competitive output * Colluding leads to the ideal situation (illegal) * MC=WMPL * X=aa+b×MPx or Y=ba+b×MPy * Y = M/Py – (Px/Py)X * Isocost Line: C(Q)=wL+rK | Variation: K=TCr-wrL | Slope: -(w/r) * Isoquant Slope: -(MPL/MPK) | MPLMPK=aKbL=∆K∆L * Optimal cost-minimization:
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Food item 1 – Cranberry cheesecake. EGGS CHEMICAL- Eggs are a self- contained food that provides many nutrients such as protein. They are low in saturated fats‚ and provide vitamin b12. PHYSICAL AND SENSORY- Egg whites are clear liquid with a slimy texture and egg yolks is a dense yellow color and is slightly more viscous. FUNCTIONAL: Eggs are a protein that provides many nutrients. When eggs are put into the cheesecake mixture‚ they add richness to the texture and help hold the structure of
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cost is still 6 for each‚ but the benefit is doubled to 8 because they benefit from each other ’s policies. Using this structure‚ we can construct this normal form of the game: from Acre & Sandler Vol. 34 In this model it is clear that the Nash Equilibrium is where neither government has a proactive policy towards terrorists. Because neither government is willing to bear the entire cost‚ neither government will be proactive although the largest
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Who are they now? In ’who am I this time’‚ I believe the author is try to tell the story of how two wandering souls had found each other through the strangest of circumstances. The two main characters Harry Nash and Helene Shaw both have trouble communicating with other people. They have a hard time dealing with society and they can not handle personal relationships very well. These two main characters are both wanders in life that had never known love before they met each other. It wasn’t even obvious
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Relative Rewards within Team-Based Compensation BERND IRLENBUSCH and GABRIELE K. RUCHALA December 2006 Abstract How to design compensation schemes to motivate team members appears to be one of the most challenging problems in the economic analysis of labour provision. We shed light on this issue by experimentally investigating team-based compensations with and without bonuses awarded to the highest contributors in teams. A purely team-based compensation scheme induces agents to voluntarily cooperate
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A Bautiful Mind © 2002 by Raymond Weschler Major Characters John Nash……………………………………………………………….Russell Crowe One of the greatest mathematical geniuses of the 20th century‚ who won the Nobel Prize in 1994‚ studied and taught at Princeton University‚ and suffered from the mental disease of schizophrenia for most of his adult life (See note on schizophrenia below). Alicia…………………………………………………………….…………….Jennifer Connelly John’s beautiful‚ intelligent and loving wife who stayed with him through
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culture‚ communication patterns‚ and other important areas of development concerning these individuals. It is important counselors have a clear understanding of who this group of people is‚ in order to effectively counsel them. Social and Cultural Premise The Chinese are the Asian ethnic group with the lengthiest history in the United States and were the first Asian ethnic group to be recruited to the West during the 1840’s according to Robinson-Wood (2009). It is cited the Chinese were perceived
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Separation of the Korea and its’ Premises Korea is a geographic name of a region‚ which is located in a Korean peninsula and connecting islands. From VII century Korea developed as a single united government. However‚ several events during the middle of XX century led to the separation of the country in two territories- Democratic People’s Republic of Korea (North Korea) and Republic of Korea (South Korea). Today‚ the two of the korean governments live in separate political‚ economical and cultural
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