Answer to image? Assume two countries (US and Germany) are facing the decision of whether to participate in the Paris Agreement or not. The following payoff matrix containsthe estimated payoffs for both countries for all possible strategies.GermanyNot joinB: (100, 200)D: (450, 350)JoinUSJoinA: (500, 360)Not joinС: (450, 300)What is (are) the Nash equilibrium (equilibria) of this game assuming that the game is played only once, and countries must simultaneously decide about theirclimate change strategies? Select all that apply.Cell ACell BCell CCell D

Nash equilibrium is the situation in which no player can improve their outcome by changing their…

Assume two countries (US and Germany) are facing the decision of whether to participate in the Paris Agreement or not. The following payoff matrix contains the estimated payoffs for both countries for all possible strategies. Germany Join Not join US Join A: (500, 360) B: (100, 200) Not join C: (450, 300) D: (450, 350) What is (are) the Nash equilibrium (equilibria) of this game assuming that the game is played only once, and countries must simultaneously decide about their climate change strategies? Select all that apply. O Cell A O Cell B O Cell C O Cell D

Assume two countries (US and Germany) are facing the decision of whether to participate in the Paris Agreement or not. The following payoff matrix contains the estimated payoffs for both countries for all possible strategies. Germany Join Not join US Join A: (500, 360) B: (100, 200) Not join C: (450, 300) D: (450, 350) What is (are) the Nash equilibrium (equilibria) of this game assuming that the game is played only once, and countries must simultaneously decide about their climate change strategies? Select all that apply. O Cell A O Cell B O Cell C O Cell D

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter8: Game Theory

Section: Chapter Questions

Problem 8.4P

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Assume two countries (US and Germany) are facing the decision of whether to participate in the Paris Agreement or not. The following payoff matrix contains the estimated payoffs for both countries for all possible strategies. Germany US Join Not join Join A: (500, 360) B: (100, 200) Not join C: (450, 300) D: (450, 350) What is the Nash equilibrium of this game if it has to be played sequentially and US moves first? US joins, Germany joins US joins, Germany does not join US does not join, Germany joins US does not join, Germany does not join
Consider trade relations between Canada and Mexico. Assume that the leaders of the two countries believe the payoffs to alternative trade policies are as follows: Canada High Tariffs Low Tariffs Mexico High Tariffs Canada trade value = $65 Mexico trade value = $75 Canada trade value = $35 Mexico trade value = $285 Refer to Table 17-4. When this game reaches a Nash equilibrium, what will the value of trade flow benefits be? Canada $35 and Mexico $285 Canada $65and Mexico $75 Canada $130 and Mexico $5 Low Tariffs Canada trade value = $140 Mexico trade value = $5 Canada trade value = $130 Mexico trade value = $275 Canada $140 and Mexico $275
Suppose China and the US are deciding whether to join an international agreement to mitigate climate change. The matrix below contains payoffs that represent each country’s net benefit from their decisions. Use this information to answer Question 24. CHINA USA Join Agreement Do Not Join Agreement Join Agreement (100,100) (0,125) Do Not Join Agreement (125,0) (25,25) [24] What does each country decide to do in a Nash equilibrium? AND What is the efficient outcome? Nash: Efficient:
2. Consider two players playing a simultaneous moves game. These players can be one of the two states of the world, state 1 or state 2, while playing the game. The payoffs-matrix for the two state games are as follows: State 1 P1 U D P2 L R 1,4 1,0 1,6 2,16 0,0 0,24 M State 2 P1 U D P2 L M R 1,0 1,4 1,6 2,16 0,24 0,0 Each players believes that the two states are equally likely, Derive the BNE of the game.
Two farmers have unlimited access to a common plot of land and can let their cows graze on it. The matrix below shows the benefits they get from grazing either 1 or 2+ cows on the land. Farmer 2 Farmer1 1 cow 2+ cows 1 cow 8,8 2,10 2+cows 10,2 4,4 What kind of game is this? What is/are the Nash equilibrium/equilibria? What is/are the Pareto efficient outcome(s) in this game? (Hint: Remember that Pareto efficiency occurs when no one person can be made better off without someone else being made worse off) The government offers a reward or subsidy for communities where farmers only allow 1 cow to graze on the common field, resulting in a new payoff matrix:…
Solve for the Nash equilibrium (or equilibria) in each of the following games. (a) The following two-by-two game is a little harder to solve since firm 2’spreferred strategy depends of what firm 1 does. But firm 1 has a dominantstrategy so this game has one Nash equilibrium. Firm 2 Launch Don’tFirm 1 Launch 60, -10 100, 0 Don’t 80, 30 120, 0 What is the Nash equilibrium of this simultaneous-move game? (b) What would the outcome of this game be if instead firm 1 moved first and then, after seeing what firm 1 chose, firm 2 chose it strategy? In this case firm 1 doesn’t necessarily need to choose a best response, but firm 2 must choose a best response since it moves second.
on Mary, UE, BD UF, AC DF, BC UF, BD DE, AC DE, BC Nancy U D Nancy -5,4 Mary -0,2 -6,2 -2.6 Which of the following answers is a subgame perfect Nash equilibrium in this game? Check all that apply. (Answers below are formatted as Mary's strategy, Nancy's strategy.)
ALBUS MINERVA N S Z MINERVA لی a C a b 3,3 ALBUS b 0,4 2,2 4 N S 15,2 1,3 13,1 For the above sequential game, both Albus and Minerva make moves in two possible situations. A number in purple indicates which node of the two for each of Albus and Minerva. Albus' strategy NS indicates a strategy of taking action N at node 1 and action 5 at node 4. Minerva's strategy ab indicates a strategy of taking action a at node 2 and action b at node 3. Adopt this format of writing strategies, find the subgame perfect Nash equilibrium. Fill in the blanks: The subgame perfect Nash equilibrium of this game is "Albus" Minvera"
What is the Nash equilibrium in this game? In the Nash equilibrium both Saudi Arabia produce a low output and earn a profit of $100 million and $20 million respectively. In the Nash equilibrium both Saudi Arabia produce a high output and earn a profit of $60 million and $20 million respectively. In the Nash equilibrium Saudi Arabia produces a low output and earns a profit of $80 million and Nigeria produces a high output and $30 million respectively. There is no Nash equilibrium.
D Question 11 Consider the following Extended Form Game: O 1 02 O 3 A' 04 (9,5) A P2 P1 B' A' (5,2) (8,5) B x A (1,6) P2 B' According to backwards induction, in how many turn does the game end? P1 B (6,7)
Suppose this is a one-shot game played by City Potato Farm and Country Potato Farm. What is the cooperative outcome of this game? Is it a good prediction of this game? options, pick one: Both City Potato Farm and Country Potato Farm produce 7,000 potatoes; Yes Both City Potato Farm and Country Potato Farm produce 5,000 potatoes; Yes Both City Potato Farm and Country Potato Farm produce 5,000 potatoes; No City Potato Farm produces 7,000 potatoes and Country Potato Farm produces 5,000 potatoes; No Both City Potato Farm and Country Potato Farm produce 7,000 potatoes; No
2. Brad and Angelina have agreed to meet up for their first date. Neither of them can remember the exact location where they arranged to meet up and have forgotten their phones at home. Their payoff matrix can be described as follows: Brad The Hive Le Monde a) What is the Nash equilibrium in this game? Angelina The Hive 5; 5 0; 0 Le Monde 0; 0 5; 5