(b) Consider the simultaneous-move game below with two players, 1 and 2. Each player has two pure strategies. If a player plays both strategies with strictly positive probability, we call it a strictly mixed strategy for that player. Show that there is no Nash equilibrium in which both 1 and 2 play a strictly mixed strategy. Player 1 a a2 Player 2 b₁ b₂ 3,0 0,1 2,1 2,1
Q: Consider the following entry game between an incumbent (I, blue payoff) and an entrant (E, green…
A: Nash equilibrium is the point of a game corresponding to which each participant optimizes his…
Q: The market structure of the local pizza industry is best characterised by monopolistic competition.…
A: The marginal cost (MC) function is the additional cost incurred by producing one additional unit of…
Q: In the circular flow of income and expenditures, the flow of money that goes from the producers to…
A: Circular flow of income and expenditure is representative form of the movement of national income in…
Q: You read in a business magazine that farmers are reaping high profits. With the theory of perfect…
A: Perfect competition: A firm in the competitive market is a price taker because it has large number…
Q: Do monopolistically competitive markets normally have the optimal number of products?
A: A market is a social arrangement that brings purchasers and sellers together to exchange goods or…
Q: Explain the reasons for rising income inequality in the US. Make sure to point out the shortcomings,…
A: Rising income inequality in the US is a multifaceted issue, and there are several reasons…
Q: A car manufacturer has the following total cost function: TC = 100 + 50 Q +4Q2 a) Is this a short…
A: Average cost will be calculated as total cost divided with the quantity. In the long run there will…
Q: Consider the following portfolio choice problem. The investor has initial wealth w and utility u(x)…
A: A key factor to understand investors and venture capitalist's decision making behavior is to study…
Q: A _______ occurs when decision-makers face incentives that make it difficult to achieve mutually…
A: In economics, decision-making involves evaluating the costs and benefits of various alternatives and…
Q: Assume that the following are the statistics for Xlandia's inflation and unemployment from 1985 to…
A: As you hav eposted multiple parts we have answered the irst part for you. Please repost for the…
Q: Calculate the total effect on welfare of a tariff of 15 per unit levied on imports.
A: The welfare effect of an import tariff is calculated by adding the producer surplus and consumer…
Q: You're running a small firm, and you have an estimate of both your cost function and your demand…
A: Total revenue is the product of price and quantity. Profit is the difference between the total…
Q: Research and identify two cryptocurrencies, how they have evolved in recent years and how might you…
A: From barter to real currency to digital transactions, money has undergone changes. The change in the…
Q: Refer to the equation below and answer the following questions. S=-400 +0.4Y I=400 (in millions) (a)…
A: Given Saving function S= -400+0.4Y Investment I=400 Values of S and I are in million. We know that…
Q: Price MC₂ MC,= S Quantity Figure 9 Demand curve and marginal private and social cost curves Towards…
A: Externality implies to spill-over effect of a goods or service on third party which is not…
Q: Which are contractionary fiscal policies? Multiple Choice O O O O increased taxation and increased…
A: Fiscal policy is the policy used to change the aggregate demand. The fiscal policy includes the…
Q: 50. Add a curve to the graph below that shows how an Exclusive Union will impact a Perfectly…
A: Since you have asked for “no- 3”, and there happens to be no such number in the questions in the…
Q: Question 42 (2:5 points/ Inflation ло #₁ M ₂ # 3 LRAS True False Yo Y₂ Y₁ LRAS123 ADO SRAS O SRAS 1…
A: The short-run aggregate supply (SRAS) curve represents the relationship between the quantity of…
Q: Describe the economic impacts of trade.
A: Trade refers to the exchange of goods, services, and capital between countries, and it can have…
Q: Calculate the real dollar rate of return on a 10,000 pound sterling deposit in a London bank in a…
A: The rate of return is the percentage gain or loss on an investment over a certain period of time,…
Q: 2. iii) Labor demand is a result of and marginal utility, marginal cost O the marginal physical…
A: The demand for labor refers to an economics principle that derives its demand for an output of firm.…
Q: A simple closed economy with government sector is given by the following equations: C = 10 + 0.75 Y…
A: Given information: C = 10 + 0.75Y ------------> Consumption function I = 20…
Q: 1. In the signalling model of education, separating equilibria in which education acts as a signal…
A: Michael Spence's influential 1973 paper "Job Market Signalling" made popular the economic signaling…
Q: Read the Chicago Tribune article titled “At Amazon’s Monee Warehouse, Robot Co-Workers are the New…
A: NOTE: Since you have asked multiple questions, answers to the first question will be provided as per…
Q: You are an investor and planning to enter the automobile industry as a supplier. The potential…
A: A table depicting the various costs associated with producing a certain quantity of goods or…
Q: An economy is described using the following equations: C-210+0.15 (Y-T) 1-225 G 185 NX --30 T-110…
A: Given the below data: C = 210 + 0.15 (Y-T) I = 225 G = 185 NX = -30
Q: True or False. Both Countries would be better off if they produced the good in which they have a…
A: Given: Production per worker Car Grain (in tons) United state 4 8 Japan 4 5 The total…
Q: Atlantic Manufacturing is considering a new investment project that will last for four years. The…
A:
Q: Andrei wants to get a ₱20,000 loan from a bank to start a milk tea business. The loan has a 10%…
A: The interest rate quoted on a loan or investment is known as the nominal interest rate since it does…
Q: 6. Consider a duopoly in which inverse demand is given by P= 100-Q, where Pis the price and Q is…
A: Oligopoly is a form of market where there is only a limited number of firms or suppliers who have a…
Q: d) What will be the market price of repairing a puncture? e) What profit will each company obtain in…
A: A market demand function in economics describes the relationship between the quantity demanded of a…
Q: The following table contains data for a hypothetical closed economy that uses the dollar as its cur…
A: Budget surplus in economics refers to a situation where a government or a household's income exceeds…
Q: Question 2 Assume that the following are the statistics for Xlandia's inflation and unemployment…
A: 2) The Phillips Curve was developed to describe the link between unemployment and inflation in an…
Q: Does a monopolistic competitor produce too much or too little compared to the most efficient level?…
A: Monopolistic is a market situation where a large number of firms are selling differentiated…
Q: Consider the following economy with: Y = 220 N-2N^2, MPN = 220-4N, NS = 8.75 w+0.2T, where T-50 is…
A: Y=220N-2N^2 MPN=220-4N NS=8.75 W+0.2T T=50 C=0.4Y-1000r-0.4T I=3613.125-500r M=P*(0.4Y-2000i) M=9275…
Q: The productivity of a country is given by f(x,y) = 100x0.650.35, where x is the amount of labor and…
A: Marginal productivity is defined as the change in the total productivity due to change in the amount…
Q: Suppose that actual inflation is 4 percent, the Fed's inflation target is 2.5 percentage points, and…
A: Current actual inflation = 4 percentInflation target = 2.5 percentUnemployment gap = -0.5…
Q: 9. A monopolist produces a good at a constant marginal cost of 4. Suppose the monopolist is able to…
A: The market situation where a single seller faces the entire market demand all by himself is known as…
Q: Refer to the normal-form game of advertising shown below. Firm A Advertise Do Not Advertise Firm B…
A: A normal-form game is a mathematical representation of a strategic interaction between two or more…
Q: 2) The consumer has the utility function u = xx. Find her indirect utility function. Confirm Roy's…
A: Roy's identity confirms the mathematical denotation of indirect utility function. Indirect utility…
Q: Consider the following portfolio choice problem. The investor has initial wealth w and utility u(x)…
A: Utility function, u(x) = x^n/n Initial wealth = w There is a safe asset (such as a US government…
Q: In short, how is it possible for countries with high and increasing per capita capital stocks to…
A: Production Function: Production function represents a relationship between the input and output. It…
Q: Consider the production of handmade rugs and assembly robots in India and Canada. Assume that Canada…
A: Free trade is a strategy that advances international trade with no barriers like tariffs, quotas, or…
Q: Assume there are two countries, Argentina and Brazil, which produce two goods, corn and wine. Assume…
A: A free trade agreement (FTA) is an arrangement that multiple nations negotiate with the goal to…
Q: What are the advantages and disadvantages of oligopoly? How does monopolistic competition differ…
A: Oligopoly is a market structure in which a few large firms dominate the market, selling either…
Q: In hypothesis testing if the null hypothesis is reje O the data must have been accumulated…
A: In the regression model, we have two hypotheses. i.e., Null hypothesis and alternative hypothesis.…
Q: Show in a graph and compare the long-term equilibria of a company operating in a monopolistically…
A: The long term equilibrium of a company under perfect competition as well as monopolistic competition…
Q: suppose that A=100%, b=48%, c=23%, D=9% and E=2% How much income is earned by each quintile? (Just…
A: The Lorenz curve is a graphical representation of income or wealth distribution within a population.…
Q: Barnes' Binoculars is considering licensing the technology to manufacture a new bifocal binocular.…
A: Initial Cost of License = 1 million Probability of prototype to be working = 60% Probability of…
Q: Suppose that the Federal Reserve sets the reserve ratio at 30% If the Fed prints $3352 in new money…
A: The legislation of the central bank mandates the bank to keep a percentage of a bank's total…
Step by step
Solved in 3 steps
- F G H 1 3 6 3 A 6. 8. 8 5 3 B 3 3 4 4. 9. C 5 3 a.) Find all pure-strategy Nash equilibria of the above game. b.) * Prove that there is a Nash equilibrium in which Player 2 chooses H, while Player 1 chooses A with probability 0.4 and chooses C with probability 0.6. 00 2,In equilibrium, what is the probability that player 1 will use the pure strategy E in this game?Which is false for the following game? C R. T. 3, 2 0,3 3, 3 M 5,0 4, 1 3, 1 B 2, 2 4, 5 1, 1 A. (M,C) and (B,C) are the only pure strategy Nash Equilibria OB. There is a Nash cquilibrium in which R is played with positive probability C. There is no Nash equilibrium in which L is played with positive probability OD. There is no Nash equilibrium in which both players choose two of their actions with positive probability
- If the players play pure strategies, the game has no Nash equilibrium. But what if they choose their moves randomly? Let each player instead opt for a mixed strategy instead of a pure strategy. The first will play action Z with probability p, and the second will play action L with probability q. At which pair (p, q) are the mixed strategies of the players in equilibrium? At which pair (p, q) does neither player want to change strategy? When are both strategies simultaneously the best response?With what probability does player 1 play Down in the mixed strategy Nash equilibrium? (Input your answer as a decimal to the nearest hundredth, for example: 0.14, 0.56, or 0.87). PLAYER 1 Up Down PLAYER 2 Left 97,95 47, 33 Right 8,43 68,91GAME 5 Player B B2 B1 Player A A1 7, 3 5, 10 A2 3, 8 9, 6 In Game 5 above, O there are no Nash equilibria in pure strategies. Player A choosing A1 and Player B choosing B2 is a Nash equilibrium. O Player A choosing A1 and Player B choosing B1 is a Nash equilibrium. O Player A choosing A2 and Player B choosing B1 is a Nash equilibrium.
- GAME UUU B1 Player B B2 A1 7,13 5, 10 A2 3,8 9,16 Player A A3 5,8 4,7 In Game UUU (see table above), assuming players move simultaneously, Player A choosing A1 and Player B choosing B3 is a Nash equilibrium. Player A choosing A3 and Player B choosing B2 is a Nash equilibrium. Both Player A choosing A1 and Player B choosing B1 and Player A choosing A2 and player B choosing B2 are Nash equilibria in pure strategies Player A choosing A1 and Player B choosing B2 is a Nash equilibrium.Not Play 1 Play 11 2 1 Trust Distrust 1 Steal Share 0 2 10 0 55 5 5 Find all of the pure strategy Nash Equilibria of this game. There can be more than one equilibrium. [Here ((Not Play, Steal), (Trust)) indicates that player 1 chooses Not Play at the first decision node and Steal at the second decision node, and 2 chooses Trust at his unique decision node.] a) ((Play, Share), (Trust)) b) ((Not play, Share), (Distrust)) c) ((Not play, Steal), (Distrust)) d) ((Not play, Steal), (Trust)) ☐ e) ((Play, Steal), (Distrust))Two workers are on a production line. They each have two actions: exert effort, E, or shirk, S. Effort costs a worker e > 0 and shirking costs them nothing. If two workers do action E a lot of output is produced and the workers earn £3 each. If only one worker chooses action E less output is produced and they both earn £1. The workers earn nothing if they both shirk. (i) Describe this situation as a strategic form game (assuming the workers do not observe each other's effort choice when making their own decision). (ii) For what values of e does this game have strictly dominant strategies? (iii) Describe the Nash equilibria of this game for e = 0,1, 2, 3. (iv) The workers now are re-arranged into a production line. First worker 1 moves and then worker 2 moves. Worker 2 can now see worker l's effort level before they choose their effort. Draw this extensive form game. (v) Find the subgame perfect equilibria of the production-line game for c = 1/2 and c = 3/2.
- 2- Consider the following game. Player 2 Player 1 U 12, 2 | 3, 9 5, 8 4, 2 D (a) Find all the Nash equilibria, pure and mixed. (b) Suppose that the payoff of the column player u:(D, L) is reduced from 8 to 6, but all other payoffs remain the same. Again, find all the pure- and mixed-strategy Nash equilibria. (c) Compare the mixed-strategy equilibria in parts (a) and (b). Did this worsening in one of player 2's payoffs change player 2's equilibrium mixed strategy? Did it change player l's? Give some intuition.3. Player 1 and Player 2 are going to play the following stage game twice: Player 1 Top Bottom Left 4,3 0,0 Player 2 Middle 0,0 2,1 Right 1,4 0,0 There is no discounting in this problem and so a player's payoff in this repeated game is the sum of her payoffs in the two plays of the stage game. (a) Find the Nash equilibria of the stage game. Is (Top, Left) a Nash of the stage game? (b) Find a subgame perfect Nash equilibrium of the repeated game where the first time they play the stage game Player 1 chooses Top and Player 2 chooses Left.Consider the following extensive form game between player 1 and player 2. T B (2, 2) L R R (3, 1) (0, 0) (5, 0) (0, 1) (a). Find the normal form representation of this game. (show the bimatrix) (b). Find all pure strategy NE. (c). Which of these equilibria are subgame perfect?