The matrix given below represents the pay offs to two large countries, Zombec and Firan, each importing different set of products from the other. Each country's government must choose between two distinct trade policies, free trade and optimal tariffs. Each policy choice represents a game strategy. Firan Zombec Free trade Optim al tariff 50 60 50 30 Free trade 30 40 60 40 Optim al tariff Determine the Nash equilibrium (if any) in the trade policy game described above. O a. The Nash equilibrium cannot be determined. Ob.Zombec will choose free trade and Firan will choose optimal tariff Oc Zombec will choose optimal tariff and Firan will choose free trade. Od. Both the countries will choose free trade. e. Both countries will choose optimal tariff

For the R & D game that Kimberly-Clark(Kleenex) and Procter & Gamble (Puffs) Play. Each firm has two strategies: Do R&D or do not R&D. If neither firm does R&D, Kimberly-Clark makes $30 million and Procter & Gamble makes $70 million. If both does R&D, Kimberly-Clark makes $5 million and Procter & Gamble makes $45 million. if only Procter & Gamble does R&D, it makes $85 million and Kimberly-Clark makes -$10 million, and if only Kimberly-Clark does R&D it makes $85 million and Procter & Gamble makes -$10 million. 7) Create the payoff matrix for this game?

Answer to image?

What would be the correct answer in this case?  I was surprised that "B. The Nash equilibrium is for Saudi Arabia to produce a high output and for Kuwait to produce a high output"  was incorrect.

Country X and Country Z specialize in the production of agricultural equipment and wheat respectively. Country X exports agricultural equipment to Country Z, which in turn exports wheat to Country X. According to the theory of comparative advantage, this mutually beneficial trade relationship is an example of   Question 40 options:   the significance of trade barriers.   a positive-sum game.   a first-mover advantage.   the advantages of mercantilism.   a zero-sum game.

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.

What is the equilibrium to Game 2? Group of answer choices: US punishes with sanctions, Iran retaliates US punishes with sanctions, Iran backs down US proposes compromise, Iran accepts US proposes compromise, Iran accelerates nuclear effort, US backs down US proposes compromise, Iran accelerates nuclear effort, US conducts an air strike   2. In Game 2, what is the highest value of X the US would ever consider offering? Why?

This table shows the payoffs for a game played between two players, A and B. B Left Center Right B = 4 B = 2 В - 1 Up A = 1 A = 6 A = 3 B = 2 B = 6 B = 7 A Middle A = 2 A = 4 A = 5 B = 2 B = 5 B = 3 Down A = 3 A = 5 A = 4 Refer to Table 17-8. Which of the following outcomes represents a Nash equilibrium in the game? a. Middle-Right b. Up-Center c. Down-Left d. Down-Center O O O O

Suppose that the St Clair river, which flows along the border between Ontario and Michigan, becomes polluted and needs to be cleaned. The American and Canadian governments need to make a decision on whether to clean the river or not. They must make this decision simultaneously. If both countries invest in cleaning the river, they each get a payoff of 871. If one country invests in cleaning the river, but the other one doesn't, the country that spends the money on the cleanup gets a payoff of 161, while the other country gets to enjoy the benefits of the clean river without having to spend any money, and therefore gets a payoff of 1159. If neither country invests in cleaning the river, they must both deal with the consequences of the pollution, and they each get a payoff of -639. Suppose that the U.S. and Canada are again making decisions simultaneously. Find the Nash Equilibrium in mixed strategies. In the mixed strategy Nash Equilibrium, what is the probability that Canada invests in…

The following game is played by 2 players         Adam Jack   Left Middle Right Up 1,2 3,5 2,1 Middle 0,4 2,1 3,0 Down -1,1 4,3 0,2   Determine all dominant strategies for Adam and Jack.  Solve the equilibrium for this game.