Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Business Economics Expert

Bruce, Colleen, and David are all getting together at Bruce’s house on Friday evening to play their favorite game, Monopoly. They all love to eat sushi while they play. They all know from previous experience that two orders of sushi are just the right amount to satisfy their hunger. If they wind up with less than two orders, they all end up going hungry and don’t enjoy the evening. More than two orders would be a waste, because they can’t manage to eat a third order and the extra sushi just goes bad. Their favorite restaurant, Fishes in the Raw, packages its sushi in such large containers that each individual person can feasibly purchase at most one order of sushi. Suppose that each player enjoys $20 worth of utility from having enough sushi to eat on Friday evening, and $0 from not having enough to eat. The cost to each player of picking up an order of sushi is $10. Unfortunately, the players have forgotten to communicate about who should be buying sushi this Friday, and none of the players have cell phones, so they must each make independent decisions of whether to buy (B) or not buy (N) an order of sushi.

a) Write down this game in strategic form.

b) Find all the Nash equilibrium in pure strategies.

c) Which equilibrium would you consider to be a focal point?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91420784

Have any Question?


Related Questions in Business Economics

Under the trade model with external economies of scale is

Under the trade model with external economies of scale, is it possible for a country to be worse off with trade than it would have been without trade? Justify your answer.

100 randomly selected adults were asked if they drink at

100, randomly selected adults were asked if they drink at least 48oz of water eaxh day and only 45% said yes. Determine whether the sample is likely to be representative of the population.

One study based on responses from 1 013 randomly selected

One study, based on responses from 1, 013 randomly selected teenagers, concluded that 43% of teenagers cite grades that their greatest source of pressure. Use a 0.05 significance level to test the claim that fewer than h ...

If all congressional representatives were elected at the

If all congressional representatives were elected at the state level rather than from particular districts, explain whether there would be more protectionism or less protectionism. Why? Explain your answer.

A grocery store carries the following items there are two

A grocery store carries the following items. There are two main categories of food - conventional and organic ingredients - and four food groups. The data are shown in the following table. Food Groups Food Categories Gra ...

What are three ways that even every forecast model should

What are three ways that even every forecast model should be evaluated to obtain the best forecast result.

A company has two divisions the first produces an

A company has two divisions. The first produces an operating system for smartphones. The other division manufacturers and markets its own smartphone. Of course, the company's smartphone runs on its own operating system. ...

With smaller companies saving thousands and larger

With smaller companies saving thousands and larger companies saving billions through flexible manufacturing, if you are a discrete parts manufacturer seeking to be more lean, it is important to consider whether this migh ...

You have been selected to participate in a free-throw

You have been selected to participate in a free-throw challenge for the halftime entertainment during a basketball game. You will have the opportunity to shoot 2 baskets, from the free-throw line. If you make one basket, ...

In a sample of phd students 80 have paid assistant-ships a

In a sample of PH.D students 80% have paid assistant-ships. A student is chosen at random from this sample. What is the probability that the student has a paid assistant-ships?

  • 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