Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Econometrics Expert

problem 1: Fighting for survival

Two animals are fighting over a prey. The prey is worth v to each animal. The cost of fighting is c1 for the first animal (player 1) and c2 for the second animal (player 2). If they both act aggressively (hawkish) and get into a fight, they split the prey in two equal parts but suffer the cost of fighting. If both act peacefully (dovish) then they also split the prey in two equal parts but without incurring any cost. If one acts dovish and the other hawkish, there is no fight and the hawkish gets the prey.

A) prepare down the normal form of the game (the bimatrix of strategies and payoffs).

B) Find the Nash Equilibria for all possible parameter configurations and given the following restrictions:

v> 0, c1 > c2 > 0, v = 2c1 and v = 2c2.

problem 2: Choosing courses

Pat and Ben have to decide which class to enroll in. There are two options: Wine Tasting and Theoretical Physics. Each individual chooses one class (it can be the same or different). The utility for each person is 4 for attending wine tasting and 2 for attending physics. Furthermore, Pat enjoys Ben’s company and gets an extra utility of x > 0 if they are both enrolled in the same class. By contrast, Ben dislikes Pat’s company and gets an extra disutility of −3 if they are both enrolled in the same class. Suppose that they make their choice simultaneously.

A) prepare down the bimatrix of players actions and payoffs.

B) For each x > 0, find all the Pure strategy and Mixed strategy Nash equilibrium (equilibria?) of the game.

C) Interpret.

problem 3: Bayesian Cournot

Consider the Cournot duopoly model in which two firms, 1 and 2, simultaneously choose the quantities they will sell in the market, q1 and q2. The price each receives for each unity given these quantities is P(q1, q2)= a − b(q1 + q2). Suppose that each firm has probability µ of having unit costs of cL and (1 − µ) of having unit costs of cH, where cH > cL. Solve for the Bayesian Nash equilibrium.

Econometrics, Economics

  • Category:- Econometrics
  • Reference No.:- M91785

Have any Question? 


Related Questions in Econometrics

Define unemployment should everyone who does not hold a job

Define unemployment. Should everyone who does not hold a job be considered "unemployed"? To help with your answer, draw a supply and demand diagram depicting the labor market. What is measured along the demand curve? Wha ...

Many cities have experienced a substantial decrease in the

Many cities have experienced a substantial decrease in the amount of garbage being collected after they changed from levying a flat tax on each household to a system where the homeowner is charged a fee for each bag or c ...

A question facing many us states is whether to allow casino

A question facing many U.S. states is whether to allow casino gambling. States with casino gambling have seen a substantial increase in tax revenue flowing to state government. This revenue can be used to finance schools ...

Consider the demand for cupcakes in problem 17 suppose

Consider the demand for cupcakes in Problem 17. Suppose Elaine decides to sell cupcakes only in packages of 20. a. How much would customers be willing to pay to obtain a 20-pack of Elaine's cupcakes? (Hint: Remember that ...

1 explain using an appropriate diagram how changes in the

1. Explain using an appropriate diagram how changes in the money supply may affect interest rates. 2. Outline the role of money in macroeconomic policy.

The usa has persistently reported large current account

The USA has persistently reported large current account deficits on its balance of payments. (a) How is the USA able to sustain this position? (b) What problems (if any) does this situation pose for: (i) the USA? (ii) th ...

Jordan enterprises has estimated the contribution margin p

Jordan Enterprises has estimated the contribution margin (P - MC)/P for its Air Express model of basketball shoes to be 40 percent. Based on market research and past experience, Jordan estimates the following relationshi ...

Prepare the topic of your essay needs to be a global

Prepare: The topic of your essay needs to be a global societal problem from the following list: adult illiteracy, funding for General Education vs STEM in primary and secondary schools, minimum wage, oceans desertificati ...

Ralph is considering purchasing an ostrich which he can

Ralph is considering purchasing an ostrich, which he can graze for free in his backyard. Once the ostrich reaches maturity (in exactly three years), Ralph will be able to sell it for $2,000. The ostrich costs $1,500. a. ...

1 how can insurance companies mitigate the problems of

1. How can insurance companies mitigate the problems of adverse selection? 2. What is moral hazard? Describe the example of moral hazard in the insurance market. 3. How can insurance providers use incentives to reduce mo ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro