Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

A selfless person approaches Jones and Smith with a $100 bill and offers to sell it to the highest bidder, but both the winning and losing bidders must pay her their bids. So if Jones bids $2 and Smith bids $1 they pay a total of $3, but Jones gets the money, leaving him with a net gain of $98 and Smith win -$1. If both bid the same amount, the $100 is split evenly between them. Assume that each of them has only two $1 bills on hand, leaving three possible bids: $0, $1, or $2. prepare out the payoff matrix for this game, and then find its Nash equilibrium.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M963909

Have any Question?


Related Questions in Microeconomics

Question below you find several incidents that are the

Question: Below you find several incidents that are the consequence of shifts in either Money Supply or Money Demand. First, tell me whether the instance is due to a Supply or Demand shift. Second, state which specific s ...

Question a find the nash equilibrium and also explain how

Question: a. Find the Nash equilibrium (and also explain how you come up with this equilibrium) b. Explain the implication of this equilibrium with regard to its stability and its role as an efficient allocator of resour ...

Question if the price consumers pay and the price sellers

Question: If the price consumers pay and the price sellers receive are not affected by whether consumers or sellers collect a tax on a good or service, why does the government usually collect a tax from sellers rather th ...

Question you are an economist who wants to know how risk of

Question: You are an economist who wants to know how risk of on-the-job injury affects peoples' wages. Studying construction workers (who have a substantial risk exposure), you discover that they earn very little more th ...

Question if you were a subsidiary manager at a

Question: If you were a subsidiary manager at a multinational, what are the lessons you can draw from "being a subsidiary manager at a multinational" that can help you successfully convince the headquarters that your ide ...

Question currently 1 us dollar is equal to 64 russian

Question: Currently 1 U.S. Dollar is equal to 64 Russian Rubles. The interest rate of the Russian Central Bank is 10%, and the interest rate of the US central bank (FED) is 0.25%. a. According to the interest parity cond ...

Question say the new york stock exchange average fell by 2

Question: Say the New York Stock Exchange average fell by 2 percent yesterday, and commentators spoke of a rush to sell. Because there had to be a purchaser of every share sold, why didn't they talk about a rush to buy? ...

Question from time to time including but not limited to the

Question: From time to time, including but not limited to the 1971-3 experience in the US, wage and price controls have been imposed to reduce inflation. Yet when these controls were eventually lifted, the price index qu ...

Question in japan one worker can make 5 tons of rubber or

Question: In Japan, one worker can make 5 tons of rubber or 80 radios. In Malaysia, one worker can make 10 tons of rubber or 40 radios. a. Who has the absolute advantage in the production of rubber or radios? How can you ...

Question a car manufacturer is considering how many safety

Question: A car manufacturer is considering how many safety devices to install on a new car. The devices function independently and each one works with probability .9. Furthermore, they are connected "in parallel" so tha ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As