Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Chapter 20, Problem 1QAP
To determine
Difference between the outcomes of people with religious training and people with strategic game.
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Economics
Game theory: Consider a collective action game
with thirty individuals (N = 30). When the number
of participants in the joint project is n, each
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
asking!
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
optimal. Explain your answer.
would it be -3? if not, how do i find it? game theory
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:
Chapter 20 Solutions
Microeconomics
Ch. 20.1 - Prob. 1QCh. 20.1 - Prob. 2QCh. 20.1 - Prob. 3QCh. 20.1 - Prob. 4QCh. 20.1 - Prob. 5QCh. 20.1 - Prob. 6QCh. 20.1 - Prob. 7QCh. 20.1 - Prob. 8QCh. 20.1 - Prob. 9QCh. 20.1 - Prob. 10Q
Ch. 20.A - Netflix and Hulu each expects profit to rise by...Ch. 20.A - Prob. 2QECh. 20 - Prob. 1QECh. 20 - Prob. 2QECh. 20 - Prob. 3QECh. 20 - Prob. 4QECh. 20 - Prob. 5QECh. 20 - Prob. 6QECh. 20 - Prob. 7QECh. 20 - Prob. 8QECh. 20 - Prob. 9QECh. 20 - Prob. 10QECh. 20 - Prob. 11QECh. 20 - Prob. 12QECh. 20 - Prob. 13QECh. 20 - Prob. 14QECh. 20 - Prob. 15QECh. 20 - Prob. 16QECh. 20 - Prob. 1QAPCh. 20 - Prob. 2QAPCh. 20 - Prob. 3QAPCh. 20 - Prob. 4QAPCh. 20 - Prob. 5QAPCh. 20 - Prob. 6QAPCh. 20 - Prob. 1IPCh. 20 - Prob. 2IPCh. 20 - Prob. 3IPCh. 20 - Prob. 4IPCh. 20 - Prob. 5IPCh. 20 - Prob. 6IPCh. 20 - Prob. 7IP
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- How many sellers/firms is a few? How would you define “strategic decision-making?” How does game theory relate to strategic decision-making?arrow_forwardWhat is game theory? How does it relate to strategic decision making? What do the phrases dominant strategy and Nash Equilibrium mean as they apply to game theory?arrow_forwardGame theory: Consider a collective action game with thirty individuals (N = 30). When the number of participants in the joint project is n, each individual, including shirkers, receives a benefit of B(n) = 18n and each participant incurs a cost of C(n) = 32 − 2n. 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 optimal. Explain your answer.arrow_forward
- 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.arrow_forwardGame Theory / Economicsarrow_forwardIdentify a real-world situation in which you see game theory/strategic behavior in action. Explain the game: Who are the players ? What are the strategies they have at their disposal? How are payoffs determined? What, if any, is the Nash equilibrium? Note, this article from Up Journey might help you come up with an example: https://upjourney.com/game-theory-examples-in-real-lifearrow_forward
- In game theory, what does the term "payoff" refer to? a) The amount of money each player has at the beginning of the game. b) The final outcome of the game. c) The utility or benefit that a player receives based on the outcome of the game. d) The number of strategies available to each player.arrow_forwardEvolutionary game theory provides a framework for understanding the emergence of preferences and behavior. Why are theoretical methodologies that employ the rational actor model an evolutionary stable strategy for economists?arrow_forwarda) How many players does this game have? What are the strategies of each player? (b) What are the Nash equilibria of this game? (c) What are the Pareto Efficient outcomes?arrow_forward
- In game theory, what is a subgame? What is a subgame-perfect Nash equilibrium? If possible, could you please provide an example? Thank you!arrow_forwardPlayer 2 Middle Left P1: $45 P1: $70 Up P2: $45 P2: $50 Player 1 P1: $50 P1: $60 Middle P2: $50 P2: $60 P1: $60 P1: $50 Down P2: $60 P2: $70 In the game shown above, list all of the Nash Equilibrium (please check ALL that apply) (up, left) (up, middle) (up, right) (middle, left) (middle, middle) (middle, right) (down, left) (down, middle) (down, right) No equilibrium Right P1: $45 P2: $60 P1: $50 P2: $70 P1: $60 P2: $60arrow_forwardNash Equilibrium (NE) A: Period 1 B: A A: 4 A: 2 B: 1 B: 2 Period 2 Nash Equilibrium (NE) Nash Equilibrium (NE) A: A: B: B: A: 6 A: 4 A: 7 A: 5 A: 4 A: 2 A:5 A: 3 B: 6 B: 7 B: 4 B: 5 B: 7 B: 8 B:5 B: 6 d. Solve the game by the Rollback method. Identify the dominant strategies and circle the Nash Equilibrium for each subgame and write it above its starting node. е. How has the penalty changed the firm's behavior?arrow_forward
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