Suppose there are two criminals who are thinking about robbing either an insurance company or a liquor store. The take from the insurance company robbery would be Gh50,000 each, but the job requires two people (one to do the robbing and one to drive the getaway car). The take from robing a liquor store is only $1000 but can be done with one person acting alone or both. a. What are the strategies of these players (the two criminals)? b. Write this situation in a normal game form assuming they are acting simultaneously. c. What are the equilibria for this game? (Note: Both Pure strategy and Mixed strategy)

Suppose there are two criminals who are thinking about robbing either an insurance company or a liquor store. The take from the insurance company robbery would be Gh50,000 each, but the job requires two people (one to do the robbing and one to drive the getaway car). The take from robing a liquor store is only $1000 but can be done with one person acting alone or both. a. What are the strategies of these players (the two criminals)? b. Write this situation in a normal game form assuming they are acting simultaneously. c. What are the equilibria for this game? (Note: Both Pure strategy and Mixed strategy)

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter16: Bargaining

Section: Chapter Questions

Problem 3MC

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