ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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- 4. Suppose in 1977 Honda and Toyota each have to decide whether to build an automobile plant in the North American market. The payoff matrix below shows Honda's payoff on the left, and Toyota's on the right. Is there a Nash equilibrium? If so, where, and how do you know? Тoyota Build small Don't build anything plant Build small 16, 16 20, 15 Honda plant Don't build anything 15, 20 18, 18arrow_forward3 0: she makes a pront of $9 An is ISK AVCise and aunty she makes. Let P be the probability that it rains the day of the concert. Find the number P tha makes Ann indifferent between organizing the concert in the Club or at the Park. 8. Compute the mixed strategy Nash equilibrium of the game below: Bungle F2 # Zippy E Left Right DOD F4 Up 2,-1 R I 20 F3 $ BAG 3 4 -2,0 HOT % 5 F5 Down 3,1 T 4,-2 VO MacBook Air 6 F6 Y & 7 F7 * U 8arrow_forwardConsider the two-player game depicted below w А 1,5 2,2 0,4 3,11 В 13,0 4,1 2,5 4,2 с 1,3 2,6 5,2 2,0] a. What is Player 2's best response if Player 1 plays B? b. What is Player l's best response if Player 2 plays z? c. What are the pure strategy Nash Equilibria? సాarrow_forward
- This payoff matrix shows a two-player variant of the sushi game, but where B really loves sushi, so her payoffs from getting to eat sushi are higher than A's, and her payoffs from there not being enough sushi are lower than A's. Payoffs are ordered A, B. В A 10, 15 10, 25 20, 15 0, -5 A. Find and state all of the mixed strategy Nash equilibria of the game. If there are multiple equilibria, number them in preparation for answering part "c." B. (From the week 6 lectures) Draw a graph of the expected payoffs for each player. Use these graphs to formulate the decision rule for each player. C. (From the week 6 lectures) Draw a graph of the best replies of the two players. Carefully label each Nash equilibrium.arrow_forwardDerive all Nash equilibria of the following game. a1 b1 a1 2,7 3,2 b1 0,0 4,1arrow_forwardIn the 3 x 3 matrix below, what is the Nash equilibrium? Р2 N S E U 6,4 7,3 5, 5 P1 H7,3 3,7 4,6 L 8,2 | 6,4 | 3, 7 Select one: a. U,E b. 8,2 О с. 5,5 O d. L,Narrow_forward
- Typed plzzz and Asap Thanksarrow_forwardHow can I solve questions 3 and 4?arrow_forward4. Consider a two player game with Fred and Barney, who tal turns removing matchsticks from a pile. They start with 33 matchsticks, and Fred goes first. On each turn, ecach player may remove either one, two, three, four, or five matchsticks. The player to remove the last matchstick wins the game. What are the optimal strategies for each player? Who will win? b. Suppose now that they can remove up to six matchsticks, how will the optimal strategies change for- each player? a.arrow_forward
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