EBK PRINCIPLES OF MICROECONOMICS (SECON
2nd Edition
ISBN: 9780393616149
Author: Mateer
Publisher: W.W.NORTON+CO. (CC)
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Chapter 13, Problem 4SP
To determine
The question answering and the dominant strategy.
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You have just played rock, paper, scissors with your friend. You chose scissors and he chose paper, so you won. Is this a Nash equilibrium? Explain why or why not.
Economics
Game theory: Consider a collective action game
with thirty individuals (N = 30). When the number
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individual, including shirkers, receives a benefit of
B(n) = 18n and each participant incurs a cost of
C(n) = 32 – 2n. Please answer the questions I am
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1. Find all of the Nash equilibria, both stable and
unstable ones.
2. Find the socially optimal outcome.
3. Check if any of the Nash equilibria is socially
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Game Theory and Strategic Choices - End of Chapter Problem
Your instructor challenges you to solve this classic economics thought experiment called the stag hunt: Suppose you and a
hunting partner are hunting for food to feed your families in a post-apocalyptic world with no stores, farms, or trade. You
lay a trap for a deer that will provide a large number of calories for your two families to continue to survive. While waiting,
you both spot a hare running through the trap. If you chase after the hare, you'll catch it but you will scare any wildlife in
the area and you won't catch the deer you were waiting for. The hare only provides a small amount of calories for your own
family and none for your partner's family.
Use the payoff matrix to answer the question.
You hunt the deer
You hunt the hare
Your friend hunts the deer
Your payoff is 5
Your friend's payoff is 5
Your payoff is 2
Your friend's payoff is A
Your friend hunts the hare
Your payoff is A
Your friend's payoff is 2
Your…
Chapter 13 Solutions
EBK PRINCIPLES OF MICROECONOMICS (SECON
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