Related questions
1) Explain your reasoning- Consider a vote being taken by a
group of friends A, B and C They are trying to decide which of the three
elective courses to take together in this term (Each one has a different
concentration and is taking required courses in her field for the rest of her
courses) Their choices are Economics, Accounting and Finance and their preferences
for three courses are as shown
Player A Player
B Player C
Economics Finance Accounting
Accounting Economics Finance
Finance Accounting Economics
They have decided to have a two-round vote: alternative X is
first paired with alternative Y, the alternative which gets a majority is then
paired against alternative Z – the majority winner in this round is the final
choice Player A won the right to choose the order How should she proceed? How
would your answer change if you would consider 2n+1 friends where n of them are
of type B and n are of type C?
2) A professor of game theory recognizes that every hour
students devote to his class is an hour lost doing other, perhaps more
entertaining things Further, psychologists have demonstrated that studying for
uninteresting subjects takes a heavy emotional toll on a student Each student
foregoes $200 in outside consulting fees for every hour he or she studies for
the class Further, students who dislike game theory suffer additional costs
(of $800 per hour) in emotional distress while studying game theory Employers
use the grade in game theory courses to screen applicants An applicant with an
MBA degree and a High Pass in game theory signals her quality as a capable
worker Specifically, employers pay a premium for a High Pass in game theory
because they have found that the kind of people who enjoy the subject are
valuable employees
The lifetime earnings (
an MBA are $14M; for a student with an MBA and a High Pass in game theory,
this increases by 5% (by $70K) This is summarized below:
Lifetime earnings with an MBA degree: $1,400,000
Lifetime earnings with MBA and a High Pass in game theory: $1,470,000
Cost per hour of study for a student
who enjoys game theory: $
200
who doesn’t enjoy game theory: $ 1,000
a Over a
fourteen week course, what is the minimum number of study hours per week that a
game theory class should require in order to earn a High Pass and effectively
screen out and award High Pass only to the students who enjoy it? Demonstrate
or Explain
b What is
the maximum number of study hours per week that would still serve as an
effective screen? Demonstrate or Explain
3) (I’m interested only in the numbers, no graphs needed)
You’re running ABC Communications a cell-phone provider
Your competitor is XYZ Wireless Currently XYZ is offering the following plan
to all its customers $65 per month subscription fee 1000 free minutes and 20
cents for all additional minutes
potential types of customers in the market:
Type 1 consumers’ demand per month is Q=300-5P
Type 2 consumers’ demand per month is Q=300-6P
(P is expressed in cents and Q is expressed in minutes per
month)
Currently your cost of providing airtime is 20 cents/minute
a) A
management consultant tells you that your area contains only Type 1 consumers
What plan should you design to attract all new consumers of Type 1 consumers
while maintaining the highest possible profit level?
b) Suppose
the consultant tells you that only Type 2 consumers reside in your area What
plan should you design to attract all new consumers of Type 2 consumers while
maintaining the highest possible profit level?
c) Suppose
your market is composed of both types of consumers but due to a hike in
interest rates your per-minute cost went up to 30 cents What type of plan
should you offer?
Step by stepSolved in 4 steps with 2 images
- 10. Game theory terminology Select the term that best describes each definition listed in the following table. Definition Nash Equilibrium Dominant Strategy Collusion Tit-for-tat Strategy Payoff Matrix/Table Prisoners' Dilemma Game A set of strategies (one for each player) in which each player's strategy is the best option for that player, given the chosen strategy of the player's opponents A strategy in which a player cooperates until the other player defects and then defects until the other player cooperates again A case in which individually rational behaviour leads to a jointly inefficient outcome A player's best choice, if it exists, regardless of his or her opponent's strategyarrow_forwardAnswer plzz...arrow_forwardnot use ai pleasearrow_forward
- 4. Game theory terminology Select the term that best describes each definition listed in the following table. Prisoners' Payoff Matrix Nash Dominant Tit-for-tat Dilemma Definition Equilibrium Strategy Collusion Strategy Game A set of strategies (one for each player) in which each player's strategy is the best option for that player, given the chosen strategy of the player's opponents The event that occurs when agents in a game form an agreement about which strategies to implement A player's best choice, if it exists, regardless of his or her opponent's strategy A strategy in which a player cooperates until the other player defects and then defects until the other player cooperates againarrow_forward5. Instead of choosing Game A or Game B in the first stage, player 1 chooses either game B or directly which action to play in game A. Game U D L (10,5) (5,10) R (0,0) (0,0) :Game B: L R U (6,6) (0,0) D (0,0) (0,0) (a) Write the game in extensive form. (b) Solve for all SPNEs of the modified game. (c) Do all the SPNEs give intuitively reasonable predictions? Why or why not? (Hint: think about what the modification of the payoff to game A entail for player 2 in that game and how the predictions contrast with the case where the game is chosen first, then the action.)arrow_forward7arrow_forward
- f3. Subject :- Economicsarrow_forward11. Game theory terminology Complete the following table by selecting the term best described by each definition. A set of strategies (one for each player) in which each player's strategy is the best option for that player, given the chosen strategy of the player's opponents A strategy in which a player cooperates until the other player defects and then defects until the other player cooperates again The event that occurs when agents in a game form an agreement about which strategies to implement Tit-for- Definition Payoff Matrix Dominant Strategy Nash tat Prisoners' Dilemma Equilibrium Strategy Game Collusion A player's best choice, if it exists, regardless of their opponent's strategy O O O O O O O O O Oarrow_forward
Principles of Economics (12th Edition)EconomicsISBN:9780134078779Author:Karl E. Case, Ray C. Fair, Sharon E. OsterPublisher:PEARSON
Engineering Economy (17th Edition)EconomicsISBN:9780134870069Author:William G. Sullivan, Elin M. Wicks, C. Patrick KoellingPublisher:PEARSON
Principles of Economics (MindTap Course List)EconomicsISBN:9781305585126Author:N. Gregory MankiwPublisher:Cengage Learning
Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-...EconomicsISBN:9781259290619Author:Michael Baye, Jeff PrincePublisher:McGraw-Hill Education